Unions brand the plan to pay factories to power down as 'bonkers'

Power firms were also urged to increase supplies to avoid shortages

National Grid was yesterday forced to use new ‘last resort’ measures to keep the lights on in homes across the country.

Major industries were for the first time asked to down their tools to protect energy supplies.

The problem was blamed on a combination of unexpectedly high demand, power plant breakdowns and very low wind power output. At one point yesterday, wind farms were meeting only 0.5 per cent of the nation’s electricity demand against the average 10 per cent.

National Grid is paying factories to stop using power to help keep the lights tonight in a move branded 'bonkers'

Under the emergency measure, announced by National Grid last year, businesses are paid to cut their power usage between 4pm and 8pm. A secondary measure – firing up mothballed power plants – was not required.

National Grid said last month that both schemes would be used only ‘as a last resort’ where demand outstripped supply. Short-term electricity prices spiked to £2,500 a megawatt-hour – 50 times the average.

National Grid said: ‘This is part of our standard toolkit for balancing supply and demand and is not an indication there is an immediate risk of disruption to supply or blackouts. It indicates that we would like our power held in reserve to be higher.’

The company insists there is no immediate risk to households even though it is the first time it has asked the power industry for extra supply since February 2012.

The problems stem from the fact that EU diktats have forced the closure of coal-fired power stations for environmental reasons.

The UK has also been slow to build replacements for nuclear power stations scheduled to close over the next few years.

Green alternatives, such as wind, solar and wave, are unable to fill the gap, particularly if the wind is not blowing.

Brian Strutton, national officer of the GMB union, said: ‘It is less than a month ago since we warned that the Government and National Grid were far too complacent about the risks of widespread blackouts.

National Grid bosses in charge of securing supplies have repeatedly sought to counter fears of blackouts this winter by insisting that electricity margins are 'manageable'

‘There can be eight to ten days per month when there is not a lot of output from wind capacity.

‘We now have the bonkers position where National Grid is using consumers’ money to pay firms to stop work in order to avoid blackouts.’

Despite the problems, more wind farms are on the way because Britain has committed to cutting greenhouse gas emissions by 80 per cent by 2050.

In a bid to counter the unpredictability of supply, the Government has come up with a series of schemes to ensure there is enough reserve power to meet demand. These include the much-criticised ‘capacity market’ policy of paying old power stations to remain on standby.

Lisa Nandy, Labour’s energy spokesman, said: ‘The chopping and changing of energy policy under this Government is creating an energy security crisis. It is preventing investment we now urgently need to keep the lights on and it could cause household bills to rise.

Chopping and changing policy

‘David Cameron should step in and end the policy vacuum to get new power stations built as quickly as possible.’

n Millions of families are paying over the odds for energy because power giants are not passing on massive falls in wholesale gas and electricity costs.

Researchers found that seven in ten households are on standard variable rate tariffs, which are the most expensive payment option.

They could save at least £129 by switching to a cheaper deal, said the Which? experts. Separate research suggests a gain of £295 by moving to a fixed rate. The wholesale price of gas has fallen by 29 per cent over the past two years and electricity is down by 30.5 per cent.

Yet over the same period the average dual fuel bill has risen by 2.8 per cent to £1,231. This means energy firms are fattening their margins while the less well-off struggle to keep the lights on.

Richard Lloyd of Which? said the figures were ‘a damning indictment of how the energy market is failing consumers’.

He added: ‘The Competition and Markets Authority must find ways to ensure many more people are confident to switch to better deals and at the same time protect vulnerable customers from paying over the odds.’