National Grid Winter Outlook no cause for alarm, says EEF

Richard Warren, EEF senior energy and environment policy adviser, said: "It goes without saying that a reliable and secure supply of energy is essential for manufacturers and announcements of reduced capacity margins will raise some concerns. "However, today's announcement is no cause for alarm - we were already aware that capacity margins would be in this region and that National Grid had introduced measures to increase them this and next winter." He added: "It is of course a concern that we've required such a last minute response, but we are content that we now have the necessary measures in place for the short-term and Government is in the process of implementing a long-term solution in the form of the Capacity Market." National Grid warned that its capacity to supply electricity this winter would be at a seven-year low due to generator closures and breakdowns. However, it added that it had contingency plans in place to manage supply, including paying big firms to switch off on cold winter evenings. Dr Colin Brown, director of engineering at the Institution of Mechanical Engineers, said: "While we're unlikely to see blackouts this winter, the drop in the amount of spare electricity capacity illustrated in National Grid's new report is a wake-up call that shows how vital it is that we invest in new energy infrastructure. "Government must stop playing politics with our energy system and the environment and make clear exactly how it is going to ensure that the country's future needs are affordably met. It is only with this clarity that energy companies will have the confidence to invest in the infrastructure needed to keep the nation warm, lit, moving and working. "Without it we risk a spiral downwards where we achieve our energy balance by closing down our industries." Dr Adam Marshall, British Chamber of Commerce's executive director of policy and external affairs, added: "The prospect of energy shortages and rolling blackouts is simply unacceptable, as they may cause major disruption for British businesses. For too long, the UK has failed to plan adequately to guarantee the energy supplies required for our economy, businesses and consumers... "In our Business Manifesto we are calling on all parties to commit to developing and implementing a 50-year UK energy security strategy addressing one of the greatest long-term challenges facing the country, ensuring businesses have access to reliable sources of power."