The closure of energy plants across the country means the UK is on the verge of an energy crisis, according to a report published by the Centre for Policy Studies today.

Coal-fired plants due to close in March next year mean that the 54,000 megawatts of forecast demand will not be covered by the National Grid’s output of 52,000MW.

Report author Tony Lodge told City A.M.: There will be massive strains on the grid next year and that could mean spikes in prices for electricity.

“It could also be a deterrent on investment coming into the country. A lack of energy could impact on the UK’s reputation as a business leader.”

Recent tax hikes on carbon producing plants and changes in regulation mean that coal-fired plants have closed earlier than clean energy replacements were able to come online.

Last week the World Energy Council knocked down the UK energy rating from AAA to AAB due to concerns over supply.

Earlier this month the National Grid was forced to call on power suppliers for more energy, as a result of multiple plant breakdowns.

The grid said however this did not mean there was a risk of blackouts, although it added “it indicates that we would like our power held in reserve to be higher.”

A National Grid spokesperson told City A.M.: “Margins are tighter than usual so we do expect to have to make similar calls again over the winter.”

This was the first time in three years the National Grid had to make the call for more energy.

Lord Redesdale, head of the Energy Manager’s Association told City A.M.: “It was warned years ago that 16/17 would be the crunch year.”

“There won’t be blackouts for days and days but there will be a rise in peak time pricing,” Redesdale added.

At times when supply is low it can mean there is lower voltage on the system, resulting in devices like computers and appliances not getting the power they need, Lord Redesdale warned.

Alistair Green, a Director of ESP Consulting UK, said: “The margin is known to be very tight at the moment. If something does go wrong there is very little buffer zone to absorb demand.”

The report comes as energy secretary Amber Rudd is expected to call for coal-fired power stations to be abandoned and replaced with gas and nuclear stations.

She is also expected to criticise the government’s role in the industry.

Rudd will say: “We now have an electricity system where no form of power generation, not even gas-fired power stations, can be built without government intervention.

“We need to build a new energy infrastructure, fit for the 21st century.”

Blog Post from City A.M.

 

See details of our Guaranteed Rent Scheme here

Central Housing Group is a residential Letting and Management agency, established in 2000.

We achieved national acclaim after winning the ‘Green Letting Agent of the Year 2014’ award, hosted by the UK Landlord Accreditation Partnership, when our team attended the UK Landlord Accreditation Partnership (UKLAP) Conference & Award Ceremony at the Thistle Hotel in Marble Arch in March 2014.

We specialise in supplying local authorities with privately rented accommodation across London.

We are proud to have been recognised for our green contributions in recent years and to have won a national award for our efforts, as we have worked tirelessly to improve the energy efficiency of all properties in our management, playing our own small part in reducing energy consumption in homes we manage across London under our Guaranteed Rent Scheme.

We have arranged for 70 properties under our management to have their lofts and cavity walls insulated. We were also able to secure funding, via the Mayor of London and the Energy Saving Trust, to enable us to replace and upgrade 35 boilers and complete gas central heating systems with ‘A’ rated energy efficient condensing boilers plus replacement of radiators, timers, thermostats and radiator valves, all free of charge to our landlords.

We are committed to assisting our tenants in saving on energy costs and to reducing the number of households that are experiencing fuel poverty.

With the effort that we put into keeping our office and properties green, Central Housing Group remains committed to improving the energy efficiency of all properties in our management in the future.