Emergency grid balancing provisions to be phased out

Emergency powers granted to National Grid to tackle short term loss of winter power supply are to be withdrawn as the capacity market matures

Need for emergency powers to procure costly electricity supplies has diminished given establishment of the capacity market. Photograph: 123RFEnergy regulator Ofgem has proposed the withdrawal of all provisions which has allowed system operator National Grid to procure power capacity at short notice to protect energy security ahead of the introduction of the capacity market.

The landmark move, on 28 July, followed a decision by the Gas and Electricity Markets Authority (GEMA) in March to remove cost recovery powers in National Grid’s licence for the procurement of emergency capacity in the winter of 2017/18.

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