UK energy prices soar after huge blaze damages National Grid site

The fire took place on Tuesday night at the Interconnexion France-Angleterre electrical grid interconnector site in Sellindge. The fire was attended by crews from Kent Fire and Rescue who were in attendance throughout the night.

As the fire ravaged the site, there were a reported twelve fire engines and other specialist vehicles who attempted to put out the fire.

It has been reported that the cables at the site will be totally offline until September 25, proving to have an impact on power prices.

The power of the plant is said to be cut by half of its capacity, or one gigawatt in power.

From this, it is estimated that the power will remain at half capacity until late March 2022.

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Within merely a day, the British electricity prices had already soared by 19 percent.

This took the total cost of prices up to around £475 per megawatt-hour (MWh).

The rise in prices comes after a warning was sent out by Ofgem that said household prices may be affected due to the rising of fossil fuel prices across the globe.

Glenn Rickson, head of European power analysis at S&P Global Platts Analytics, spoke to Reuters and said: “The outage is going to lift the potential for price volatility as long as it’s offline… and of course demand will get higher as we move further into winter.”

The impact of the rise in prices was not ignored, as UK Steel director-general Gareth Stace has said that the “extortionate” prices had already forced some steelmakers to suspend their operations.

Mr Stace said: “Even with the global steel market as buoyant as it is, these eye-watering prices are making it impossible to profitably make steel at certain times of the day and night.”

An investigation into the fire at the site has now been launched by the National Grid.

They have said that the investigation is underway and that they will “update the market with any changes as necessary”.

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