The annual winter report of The National Grid's Electricity System Operator (ESO) arm has predicted that while there would be a sufficient margin between peak demand and supply all winter round, it anticipates that it may have to issue Electricity Margin Notices and Capacity Market Notices.
Electricity Margin Notices are used to send a signal to the market of looming tightness in supply in a bid to ensure there is a greater safety cushion between power demand and available supply.
Six such notices were issued in winter 2020 - a record for the UK’s electricity grid. Only two notices were issued in the winters between 2011-2019.
The coming winter brings even tighter conditions than last year, with gas prices rising to historic highs and a fire at a French interconnector sending the cost of electricity soaring.
The ESO said its base case for de-rated margin, which is a measure of the amount of excess capacity expected above peak electricity demand, is...