Commenting on the publication of National Grid’s Winter Outlook Report published today, Richard Warren, Senior Energy Policy Adviser at EEF, the manufacturers’ organisation, said:
“Today’s Winter Outlook report should be no great cause for alarm and forward power prices are certainly not indicating any sense of panic. The expected 5.1% margin for the coming winter compares favourably with margins earlier this decade, and the double figure margins that emerged following the financial crisis are really the exception rather than the norm.
"The announced closure of 7.4GW of capacity and the worsening outlook for next winter does increase the pressure on Government, but we remain confident that the short term measures National Grid has been equipped with will continue to provide us with the necessary cushion.
"In the longer term, it is imperative that the Capacity Market starts to deliver the right signals to investors to bring forward new build gas plant and we would certainly want to see evidence of this in the upcoming auction."