Fire hits British power imports adding to demand and price pressures

A fire at a National Grid power facility has cut power capacity by up to 2 gigawatts, further squeezing electricity supply and pushing prices up to almost record highs. The blaze forced National Grid to evacuate staff from the site at Sellindge, Kent, where a high-voltage power cable brings electricity from France to a converter station.

It comes at a time when the UK faces high demand increasing prices after a global gas market surge combined with reduced capacity caused by power plant outages and low wind speeds.
Reuters reported that day-ahead British power prices jumped almost 19% following the incident at the IFA1 interconnector site at Sellindge, Kent.

Analysts say that the fire could prove to be a highly significant event, with the possibility of an extended outage keeping the IFA site out of action until mid-October amid fears of wider power capacity problems during the winter if there is a combination of increased demand from cold temperatures and reduced supply due to low wind.

The IFA2 interconnector, which is a second link between Britain and France, was not affected by the incident.

    Share Story:

Recent Stories


Cyber physical risks
Property damage as a consequence of cyber attack is often excluded from standard property policies, but as the industrial internet of things expands, so too do the risks. This podcast examines the evolving threat landscape. Published October 2021

Financial institutions were early adopters of cyber security and insurance. Are they still on top of the game?
Managing huge amounts of sensitive data online makes financial institutions a prime target for hackers. As such, the sector was an early cohort for insurers in creating cyber cover. Since then, the market has evolved almost beyond recognition. It continues to challenge itself to this day, complying with rigorous regulatory demands and implementing avant-garde enhancements to keep abreast of the ever-changing risks. Published June 2021

Advertisement