Power Cuts Threat As Plants Are Shut

Britain could run out of generating capacity in December and January particularly if the weather turns very cold.

Bills will also rise next year, industry figures have recently warned.

At a private meeting in June, National Grid bosses are believed to have issued a plea to the generators to stop shutting down power stations.

The plants are being taken off line because with wholesale prices low for a number of years, the generators cannot afford to keep stations standing idle.

It may not be easy to persuade them to bring power stations back on line because of the cost and financial risk involved.

Last night, David Porter, of the Association of Electricity Producers, said there was a real risk of demand outstripping supply in the event of a bad winter.

Britain could then have to rely on importing electricity from France.

Mr Porter said major industrial companies could be asked to scale down their use of electricity this winter. After that, there could be power cuts.

"The testing time will come if we have a December like last year," he said.

'Much depends on the weather.

A crisis would not mean everyone's lights going out at the same time. The grid company would initially start rationing, particularly with large industrial companies.

"There are companies that have expressed a willingness to give up on contracted electricity if they are recompensed," he said. "But the grid company has flagged up the potential of intermittent power cuts unless more generating capacity is brought back into use."

Current UK generating capacity is put at 65,000 megawatts.

Demand peaked last December at 54,000 megawatts.

France can export 2,000 megawatts to the UK via a cable under the channel.

This would be enough electricity to power two cities the size of Bristol.

The spot price of electricity doubled earlier this week because of high demand on both sides of the Channel.

France has had to cut output from its nuclear power stations dramatically because of the heatwave.

Mr. Porter said prices could rise in the long term because of shortages linked to a lack of generating capacity, new EUinspired taxes on gas and coalfired generation and a switch from nuclear power to expensive wind, water and wave power.

Energy traders said the days of cheap power were coming to an end as the market was pulled into line with the Continent, where electricity is more expensive.

The cost of wholesale electricity is expected to rise by a third this winter, which will be a blow to industrial users such as the chemical sector, which requires huge quantities of power.

Prices for private users could start rising by next April.

Home electricity bills are expected to increase over the next few years from an average of 250 to 277 a year.

Mr. Porter said: "Wholesale prices have been so depressed for a couple of years that some companies have begun to close power stations because they can't afford to have them standing idle." But he warned: "These power stations will have been closed down for sound business reasons." "Companies will want to be confident that they will not be left with white elephants if they go to the expense of bringing them back on line, he added. FROM THE POWER STATION TO YOUR KITCHEN

Total UK generating capacity 65,000 megawatts per hour.

1 megawatt is enough to boil 400 kettles.

Source of UK electricity: Hydro/wind: 2%* Oil: 1% Nuclear: 25% Coal power stations: 36% Gas power stations: 36%

*Ministers are insisting that 10% of power should come from 'green' sources by 2010.

The 30 major electricity generators in the UK sell to seven main supply companies.

Average annual household electricity bill: UK...........250.00 France.....277.50 UK electricity exported to France when there is surplus via a cable under the sea, which carries up to 2,000 megawatts per hour. Power also imported to UK from France.

There are plans for cables between UK and Netherlands and Norway.