London Daily

Focus on the big picture.
Wednesday, Oct 01, 2025

Risk of UK power cuts this winter has increased, says National Grid

Risk of UK power cuts this winter has increased, says National Grid

Industry bosses concerned energy crisis may cause production slowdowns and factory shutdowns
The risk of power cuts to factories and homes this winter has increased, the National Grid warned, as the business secretary prepared for a crunch meeting with industry bosses concerned the energy crisis may force them to scale back production.

The price of gas and electricity has soared in recent weeks, leading to the collapse of multiple energy suppliers and prompting warnings of higher costs for consumers, factory shutdowns and increased pollution as plants switch to dirtier but cheaper fuels.

The unfolding energy crisis has coincided with the Grid’s annual assessment of Great Britain’s resilience to disruption to electricity supplies, with the key “margin” figure falling to its lowest in five years.

The Grid’s electricity system operator (ESO) said the amount of reserve electricity supply that could be called upon was expected to be 6.6% of demand, but could fall as low as 4.2%.

It said it believed there was enough slack in the system to avoid blackouts affecting households and factories.

But it said that conditions had worsened since a prediction it made in July, after a fire knocked out a high-voltage subsea power cable importing electricity from France. Half of the 2GW cable is expected to be unavailable until March.

Planned shutdowns at gas plants and the retirement of two nuclear reactors are also factors in the tighter margin for the winter.

The business secretary, Kwasi Kwarteng, is due to meet leaders from industries such as steel, glass, ceramics and chemicals on Friday, but is expected to tell them to forget about receiving any extra assistance.

While factories are not expected to face electricity blackouts, they say they need help with costs. Some of the most energy-intensive industries have issued a plea to the government for financial support to help them cope with soaring energy prices.

They say the cost of electricity could force factory shutdowns, production slowdowns, and switches from gas to more polluting energy sources such as fuel oil, potentially causing embarrassment ahead of the upcoming Cop26 climate conference in Glasgow.

Shadow business minister Ed Miliband said the gas price crisis was “made in Downing Street”.

“The UK is particularly vulnerable to increases in gas prices because the government allowed our gas storage facilities to close, blocked onshore wind, cut solar subsidies, stalled our nuclear programme and because of their total failure to deliver a long-term plan for energy efficiency.”

On Thursday, the Grid said that the UK would have to outbid European countries to get hold of gas over the winter, indicating further pressure on prices.

Energy advisory group Cornwall Insight has said the average dual fuel bill could rise by as much as 30% next year if gas and electricity prices continue to soar and more suppliers go bust, reaching £1,660 annually.

While the government has imposed an energy price cap, the ceiling rises regularly in line with costs faced by suppliers, who have been battered by soaring wholesale prices.

So far this year, 12 suppliers have collapsed, with many more predicted to go to the wall by the end of the year. Jonathan Brearley, chief executive of energy regulator Ofgem, told an industry conference on Thursday that the watchdog needed to be “more focused on business models and the risk they carry” in future.

Speaking at the same event, Kwarteng said the government “will not bail out failed companies, there cannot be a reward for irresponsible management of businesses.”

Some small suppliers have been criticised for setting up shop with risky business models that meant they weren’t properly “hedged” against rising gas prices.

Officials at the Department for Business, Energy and Industrial Strategy are understood to be considering measures to speed up the UK’s transition to renewable energy to reduce reliance on gas, including more frequent windfarm auctions.

Boris Johnson this week pledged to remove fossil fuels from electricity generation by 2035.

While coal has been all but phased out of power generation, gas can still account for more than 50% of supply on windless days when the sun isn’t shining.

Kwarteng said on Thursday that reducing reliance would involve boosting wind power, gas plants that use carbon capture and storage to reduce carbon emissions and “at least” one nuclear project.

The government is expected to rubber-stamp French state-owned energy company EDF’s plans for a the Sizewell C reactor in Suffolk but has yet to find a developer for Wylfa Newydd, on Anglesey.

Officials are drawing up plans to overhaul the way nuclear power stations are funded, to make them more attractive to private investors.

Kwarteng said “the volatility of the gas price has shown that we do need to plan strategically, and I think net zero helps us do that, for a secure, affordable, and sustainable energy system.”

Gas prices have soared across Europe but have been particularly high in the UK, reaching record levels above £4 per therm.

The International Energy Agency said on Thursday that Russia could help ease the crisis, telling the Financial Times that the Kremlin was able to increase gas flows into Europe by up to 15%.

Russian president Vladimir Putin has said Europe’s “mistakes” are to blame for the crisis, rather than any reluctance in Moscow to open gas taps.

However, he used the opportunity to highlight regulatory delays in Europe to the new Nord Stream 2 pipeline, saying the planned connection could help bring down prices.
Newsletter

Related Articles

0:00
0:00
Close
Trump Administration Launches “TrumpRx” Plan to Enable Direct Drug Sales at Deep Discounts
Trump Announces Intention to Impose 100 Percent Tariff on Foreign-Made Films
Altman Says GPT-5 Already Outpaces Him, Warns AI Could Automate 40% of Work
Singapore and Hong Kong Vie to Dominate Asia’s Rising Gold Trade
Trump Organization Teams with Saudi Developer on $1 Billion Trump Plaza in Jeddah
Manhattan Sees Surge in Office-to-Housing Conversions, Highest Since 2008
Switzerland and U.S. Issue Joint Assurance Against Currency Manipulation
Electronic Arts to Be Taken Private in Historic $55 Billion Buyout
Thomas Jacob Sanford Named as Suspect in Deadly Michigan Church Shooting and Arson
Russian Research Vessel 'Yantar' Tracked Mapping Europe’s Subsea Cables, Raising Security Alarms
New York Man Arrested After On-Air Confession to 2017 Parents’ Murders
U.S. Defense Chief Orders Sudden Summit of Hundreds of Generals and Admirals
Global Cruise Industry Posts Dramatic Comeback with 34.6 Million Passengers in 2024
Trump Claims FBI Planted 274 Agents at Capitol Riot, Citing Unverified Reports
India: Internet Suspended in Bareilly Amid Communal Clashes Between Muslims and Hindus
Supreme Court Extends Freeze on Nearly $5 Billion in U.S. Foreign Aid at Trump’s Request
Archaeologists Recover Statues and Temples from 2,000-Year-Old Sunken City off Alexandria
China Deploys 2,000 Workers to Spain to Build Major EV Battery Factory, Raising European Dependence
Speed Takes Over: How Drive-Through Coffee Chains Are Rewriting U.S. Coffee Culture
U.S. Demands Brussels Scrutinize Digital Rules to Prevent Bias Against American Tech
Ringo Starr Champions Enduring Beatles Legacy While Debuting Las Vegas Art Show
Private Equity’s Fundraising Surge Triggers Concern of European Market Shake-Out
Colombian President Petro Vows to Mobilize Volunteers for Gaza and Joins List of Fighters
FBI Removes Agents Who Kneeled at 2020 Protest, Citing Breach of Professional Conduct
Trump Alleges ‘Triple Sabotage’ at United Nations After Escalator and Teleprompter Failures
Shock in France: 5 Years in Prison for Former President Nicolas Sarkozy
Tokyo’s Jimbōchō Named World’s Coolest Neighbourhood for 2025
European Officials Fear Trump May Shift Blame for Ukraine War onto EU
BNP Paribas Abandons Ban on 'Controversial Weapons' Financing Amid Europe’s Defence Push
Typhoon Ragasa Leaves Trail of Destruction Across East Asia Before Making Landfall in China
The Personality Rights Challenge in India’s AI Era
Big Banks Rebuild in Hong Kong as Deal Volume Surges
Italy Considers Freezing Retirement Age at 67 to Avert Scheduled Hike
Italian City to Impose Tax on Visiting Dogs Starting in 2026
Arnault Denounces Proposed Wealth Tax as Threat to French Economy
Study Finds No Safe Level of Alcohol for Dementia Risk
Denmark Investigates Drone Incursion, Does Not Rule Out Russian Involvement
Lilly CEO Warns UK Is ‘Worst Country in Europe’ for Drug Prices, Pulls Back Investment
Nigel Farage Emerges as Central Force in British Politics with Reform UK Surge
Disney Reinstates ‘Jimmy Kimmel Live!’ after Six-Day Suspension over Charlie Kirk Comments
U.S. Prosecutors Move to Break Up Google’s Advertising Monopoly
Nvidia Pledges Up to $100 Billion Investment in OpenAI to Power Massive AI Data Center Build-Out
U.S. Signals ‘Large and Forceful’ Support for Argentina Amid Market Turmoil
Nvidia and Abu Dhabi’s TII Launch First AI-&-Robotics Lab in the Middle East
Vietnam Faces Up to $25 Billion Export Loss as U.S. Tariffs Bite
Europe Signals Stronger Support for Taiwan at Major Taipei Defence Show
Indonesia Court Upholds Military Law Amid Concerns Over Expanded Civilian Role
Larry Ellison, Michael Dell and Rupert Murdoch Join Trump-Backed Bid to Take Over TikTok
Trump and Musk Reunite Publicly for First Time Since Fallout at Kirk Memorial
Vietnam Closes 86 Million Untouched Bank Accounts Over Biometric ID Rules
×