It was always known the National Grid made ‘constraint payments’ – cash given to operators to temporarily shut down their turbines when electricity supply outstripped demand.

But what was not made public were details of so-called ‘forward trades’, in which the National Grid agrees a pay-out when the weather is expected to be stormy.

The money is paid out even before a turbine shuts down.

Limited information about the forward trade deals is published in an obscure section of the National Grid website – and in a format that even energy experts have struggled to interpret.

The National Grid has admitted £15.5million was paid out to energy operators in the form of conventional constraint payments in 2011-12 in England and Scotland.

But for the first time it has emerged that an even greater sum – £18.6million – was paid out in forward trades. It means the total payments for that year were £34.1 million, far higher than previously reported.

 

Read more of the report from the The Daily Mail by Sam Greenhill and Graham Grant

 

Here is CATS response


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