National Grid expects there to be “sufficient generation” to avoid rolling power cuts this winter, with Britain’s supplies boosted by the return of a crucial electricity link to France that was hit by fire.
The power networks owner said last month that Britain should be able to meet its energy needs this winter but could experience rolling power cuts in a worst-case scenario if Russia cut off gas supplies into Europe.
Its chief executive, John Pettigrew, said on Thursday that the outlook had not changed, and the mild weather so far this winter was a positive for the energy picture. “What we have seen is pretty mild weather, which has led the Europeans to probably put more gas into storage than they originally anticipated. My understanding is the storage in Europe now is pretty much full,” he said.
Last year the Sellindge converter station in Kent was forced to shut down a high-voltage cable that brings electricity from France after a huge fire. Half of its 2,000 gigawatt (GW) capacity was knocked out by the fire.
Pettigrew said 500 megawatts would be restored this month and the remaining 500MW in December. “So by the time we get to the peak of the winter, the full 2GW will be available from the French interconnector, which I’m delighted about,” he said.
National Grid reported a 50% rise in operating profits to £2.24bn in the six months to 30 September, buoyed up by extra revenues from its acquisition of the network operator Western Power Distribution. Its earnings were also boosted by a “strong performance” in its New York and New England business, plus the insurance proceeds from the Sellindge fire.
Pettigrew stressed that the company did not produce or sell energy and was not recording the windfall profits of some oil and gas producers. Rishi Sunak and the chancellor, Jeremy Hunt, are reportedly considering extending the windfall tax on those firms and curbing the revenues of electricity generators.
Pettigrew said he understood Sunak and Hunt’s focus on tax and spending “to balance the UK plc books” but said: “What we need is a stable policy regime, a stable regulatory regime and a stable financial regime.”
National Grid increased its investment target to £40bn by 2026, up from a previous goal of £30bn to £35bn. The firm said £29bn of this would be in “the decarbonisation of energy networks”.
“Connecting renewables and decarbonisation is an absolute focus. That’s a huge investment programme, £1m an hour, every single hour of every single day, 365 days a year,” he said. “Connecting clean energy at scale and pace will bring down energy bills for customers and increase energy security.”
Pettigrew said the “vast majority” of suppliers in the UK had now signed up to a scheme launched last week to incentivise households to shift their power usage outside peak times this winter.
The Guardian reported last week that E.ON, EDF and the British Gas owner, Centrica, had said they planned to participate in the scheme, which was first piloted by Octopus Energy.
“We’re really pleased with the take-up. It will continue to grow as we move through the winter,” Pettigrew said.
