National Grid’s Supplemental Balancing Reserve cost £180m over three years and was never used according to a report by the Energy and Climate Intelligence Unit.
The reserve power scheme introduced in 2014 contracted 10 units with a total 3.5GW de-rated capacity to keep the lights on over winter 2016/17.
Yet the report found National Grid did not need to call on any contingency measures despite a prolonged spell of cold weather, a busy power station maintenance schedule and low import availability from France.
ECIU said the findings show warnings of blackouts in the UK have been overblown, leading to “excessive spending” on insurance policies to ensure energy security.
Tory MP and ECIU advisory board member James Heappey said: “We should ask whether ministers of the time were spooked by claims of an imminent loss of power.
“Certainly, stories around at the time, with Ofgem, SSE and some analysts claiming there would be a serious blackout risk within three years, may have played a role into persuading ministers to spend consumers’ money unnecessarily.”
Image: T-pylon (National Grid)
