Home Business News National Grid warns of power shortages this winter as energy crisis hits Europe

National Grid warns of power shortages this winter as energy crisis hits Europe

by LLB staff reporter
7th Oct 21 12:25 pm

The National Grid has warned of the possibility of winter shortages as the energy crisis has hit Europe.

The National Grid has reassured that Britain will not face blackouts, but warned the risk of power shortages will be the highest in five years this coming winter.

The energy company said the UK hopefully will not run out of gas and the country has to be ready to outbid other countries to secure supplies.

They have warned of “significant price spikes” and said that despite having the lowest electricity margins since the winter of 2016 the UK should have “sufficient” supplies.

Fintan Slye, executive director of the National Grid electricity system operator, said, “We are confident that there will be enough capacity available to keep Britain’s lights on.”

National Grid said that there should also be a “positive gas supply margin”, with maximum gas “supply capability.”

In a brief statement National Grid said, “Necessary flexible sources of supply such as liquified natural gas [LNG] and gas interconnectors will, as in previous winters, require a positive market price differential in order to flow to Great Britain from both European and global markets.”

They added that “the tightest margins could occur in the first two weeks of December.

“Any tight margin days could see significant price spikes in the balancing mechanism.

“In addition, forward prices are high due to external pressures such as high gas prices. This will increase balancing costs even if the volume of system actions remains consistent with previous winters.”

The electricity outlook said, “forward prices, including peak prices, in Great Britain to be ahead of those in continental Europe for the majority of the winter period.”

Laura Cohen, chief executive of the British Ceramic Confederation warned that some businesses could be forced to shut down production as a result of high energy costs.

She told the BBC, “In the event of national supply shortfall, our members are near the front of the queue to be forced off the gas network while households are last, and this can happen at very short notice.

“A forced quick shutdown runs a very high risk of severe damage to brick kilns, which can be 100 metres long, operating over 1,000C, and that can threaten business viability.”

Ofgem has been forced to raise the price cap for 15m homes and energy bills have already soared by 12%.

Energy bill could rise by a third to as high as £1,700 per annum early next year unless wholesale prices drop.

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