National Grid gives power pledge

BRITISH power company National Grid said yesterday it would be able to meet demand this winter despite offering contracts to large manufacturers to use less power.

The Sunday Times said companies such as Rio Tinto and Alcan had been approached to sign special “turndown” contracts in which they agree to have their power cut by a specified amount with just a few hours’ notice. But a National Grid spokeswoman said the move was “nothing new” and had been a method used by the company to balance supply and demand in previous years.

She added: “At times of high demand we can look at increasing generation or by decreasing demand from a customer. It depends which would be the best option.”

Companies who sign-up to the contracts are normally paid an initial fee with further payments depending on any power rationing that takes place. National Grid, which owns and operates the high-voltage electricity transmission network in England and Wales, has not disclosed how much each contract is worth or which customers had agreed to the deal. Those firms who take part are normally those who do not require continuous heat and power for their processes or have alternative sources of energy.

Such agreements could be worth up to 1,400 megawatts of power. Details of the contracts come amid concern over whether Britain has enough power in reserve to meet the demands on the network made by a cold winter. Many plants have been taken out of service in the wake of a 40% fall in wholesale electricity prices over the last three years. As well as electricity distribution, National Grid provides Britain’s natural gas transportation system.

It also has a major electricity operation in the US, providing the largest transmission and distribution network in the New England/New York region.

That service came under spotlight during the recent power cut in North America, although National Grid’s Niagara Mohawk business has been cleared of blame.