Energy supplies ‘fine for winter’ in spite of power station closures

Chris Train, director of market operations, said electricity margins – the difference between peak demand and available supply – were “tighter than we have seen historically” but that there was enough to meet the country’s needs.

However, regulator Ofgem says risks to security of electricity supply – the dangers of the lights not being kept on – are now increasing at a faster rate than previously expected.

National Grid said its central forecast was for an electricity margin of five per cent during peak demand in cold weather, broadly in line with previous analysis. A spare eight per cent capacity was forecast for average temperatures.

Margins have been falling over the past few years, blamed on new laws on power station emissions and economic pressure to mothball old gas-fired power stations.

This has only partially been offset by a fall in peak demands amid energy-saving measures and declining heavy industry, together with increasing wind generation and some new gas-fired power stations.

Mr Train said: “While there have been power station closures since last winter, the information suggests that the market can meet demand in cold weather.”

Concern about energy supply has been fuelled by reports that gas stores were driven dangerously low during the prolonged cold spell in March. However, the new National Grid report said gas storage has increased since last year.

There is also ongoing public concern about high prices and profits made by the big energy firms, resulting in a Labour pledge to freeze tariffs should the party win power.

Angela Knight, chief executive of Energy UK, which represents energy companies, said: “National Grid has demonstrated that the UK’s demand for energy is getting closer to the amount we can produce or buy in.

“We have enough energy now but this timely report shows that...investment is urgently needed to ensure we build the new power stations we are going to need.”