A fire at an interconnector is expected to raise energy rates: A fire at National Grid’s IFA Interconnector in Sellindge, Kent forced the evacuation of the facility, but it might potentially have a significant impact on Energy Bills.
Since 2019-2020 overall power costs were more than double the average price, this is according to energy market expert EnAppSys.
It also shows that daily average prices have been eight times higher in the previous two weeks than in 2019.
“This fire at IFA1 is a major event, we could be looking at an extended outage. In the long run, we will lose 2GW of import to the GB markets whilst we are struggling at the moment with low margins.” said Phil Hewitt, Director of EnAppsys.
“With margins tight anyway for this winter, as exposed by National Grid ESOS’s early winter outlook publication this year, it puts the GB market in a risky position for the winter and especially if we suffer from periods of low wind and cold temperatures.”
“National Grid has a projected derated margin of 4.3GW in its early winter outlook report, this looks like it may have just almost halved.”
“On the other side, France has now got a net extra 2GW of available supply so this should help prices on the continent.”
A fire at an interconnector is expected to raise energy rates