My Golf Mk IV 1.6 auto has completed just under 30,000 miles. It has driven impecably until recently, when joining a stream of traffic and accelerating by kicking down a gear, as soon as the traffic indicator is used, the power drops off alarmingly. After cancelling the traffic indicator, the power reumes normally but the sudden lossof power when you need it to join faster traffic is frightening. I have also noticed this when accelerating and changing from dipped beam to high beam. A warnig sighn appears on the dash-E.P.C. I cannot find any reference to EPC in my hand book. All of the rest of the electrics appear to be behaving normally, including the Climate Control.

 

I assume you mean 1.8...not 1.6

I was having just about the same issue as you were, exept I never got an idiot light for EPC. I believe EPC refers to your ECU, which is the central computer or "brain" for the car. Anyway, mine was a busted turbo. Dealer replaced it under warranty and it's been running great ever since. If you haven't already, take it in to get it checked out.