Question

To ask the Secretary of State for Energy and Climate Change, what assessment she has made of the potential effect on security of energy supply of failures this winter in the operation of those major coal power stations which are due to close in spring 2016.

National Grid, as part of their winter outlook process assesses the overall reliability of technologies based on their historic reliability. This is the ‘de-rating factor’ that is applied to calculate available margins.

There is nothing about the decision to cease connection to the transmission grid that would make a plant more unreliable prior to its planned withdrawal.

Our priority is to ensure that British families and business have access to secure affordable energy supplies that they can rely on and we are taking prudent steps to manage the margins in winter 2016/17. Since 2014 National Grid have had the ability to procure a Contingency Balancing Reserve (CBR), which consists of the Supplemental Balancing Reserve (SBR), where existing power stations stand by ready to generate additional electricity and the Demand Side Balancing Reserve (DSBR) where companies bid for contracts with National Grid to receive payments in return for reducing their electricity usage times of peak demand should National Grid so require. National Grid and Ofgem agree that we should retain the ability to procure CBR for the next two winters. Government supports this position and we expect confirmation later this month following an Ofgem consultation. Beyond winter 2017/18, the Capacity Market will take over as the long term solution for security of supply.