A committee of peers has called for an overhaul of the way the government's energy policy is run.

In a report published on Thursday the Lords science and technology committee warned that the duties of regulator Ofgem were "too short-termist".

Warning of the "possibility of shortages", the peers noted that the regulator's duties focus on the interests of consumers and promoting competition in the sector.

The report said minister should ensure that Ofgem "takes a long-term view of its responsibilities", with a view to ensuring the security and reliability of supplies.

"The government seems to believe that market forces alone will prevent the lights going out - we're not so sure," warned the report.

It also called for improved co-ordination between Whitehall departments, and the appointment of a minister with sole responsibility for energy policy.

Focusing on the implication of the government's aim to produce 10 per cent of UK electricity from renewable energy by 2010, the committee said the target was "unlikely to be met because of insufficient long-term incentives for investors in the sector".

The study also called for greater long-term stability in renewable electricity prices and said there should be more debate on the potential of large-scale tidal power.

And the peers also called for a more sympathetic regulatory framework for biomass generation.

"The government's drive to cut greenhouse gas emissions and secure our energy supply should be applauded, but it's not going about it the right way," warned committee chairman Lord Oxburgh.

"Energy from renewable sources is expensive - if the government wants the private sector to invest in renewables so as to achieve its targets, it needs to provide more reassurance about long-term returns.

"The current support arrangements favour only those developments that will give a quick return - in effect onshore wind farms."

Lord Oxburgh said the problem with wind power was that it requires a conventional backup for times when there is little wind.

"The difficulties caused by such intermittency would be eased with a more diverse range of renewables," he added.