The Lords’ science and technology committee criticised the government for allowing its power supply margins to be squeezed too tightly as older plant close before new, cleaner capacity is deployed.
“It is not acceptable for an advanced economy, hugely dependent on electricity, to sail so close to the wind,” the latest committee report said.
“Moreover these measures, which came at a cost to the taxpayer, were in conflict with the government’s wider aims to decarbonise electricity generation,” said committee chair Lord Selborne.
The government’s recent capacity auction was heavily criticised by environmental and consumer groups for subsidising existing fossil fuel power plants to remain online in four years’ time rather than bring forward new, cleaner capacity or demand-side measures.
In addition National Grid’s recent measures to safeguard against near-term blackout risk by holding old gas- and coal-fired plant in reserve cost over £30 million despite remaining unused over the last winter. The operator has begun tendering for further contracts to maintain safety margins for the coming winter.
“The encouraging finding from our investigation is that overall, the resilience of the electricity system is robust, and witnesses told us we have the most reliable transmission network in Europe. But our report found that the government sailed too close to the wind,” Selborne said.
The committee urged government to avoid further threat to the resilience of the electricity system, by managing the demand-side of the energy system as well as the UK’s interconnection with neighboring markets.
“Giving consumers more control over how and when they use electricity has huge potential to reduce costs and improve resilience,” said the committee, adding that the government should “do more” to optimise its planned smart meter rollout.
In addition the UK should increase its flexibility by reviewing how beneficial the contribution of interconnected countries could be at times of peak demand, while new domestic capacity should be developed to maximize flexibility.
In addition the committee has urged “constant vigilance” against the real and evolving threat of cyber-attack which could undermine the resilience of the electricity system.
The committee warned that the government must “stay ahead of the game, with dedicated investment into research and development across a wide range of technologies, and constant alertness to cyber-threats.”
“Only then can the government ensure that it can weather any storm, and continue to keep the lights on in the long-term,” Selborne added.