National Grid chiefs play down fears of imminent blackouts in London – but bosses fear switch to renewables mean the south east may need to pay more just to keep the lights on

National Grid bosses today denied claims that South East England and London could face blackouts by 2028 unless the region pays more for its power than other areas.

Executives from the body’s Electricity System Operator (ESO) were claimed to have made the allegations in private conversations with the energy industry.

An industry source told the Daily Telegraph that ESO bosses said the network was getting so congested that ‘there will be blackouts in the South East by 2028’.

They allegedly blamed this on a push by the Government to make the grid net zero by 2030 by switching to less predictable wind and solar power.

A second source said the ESO was ‘very worried about keeping the lights on’ in the region, and that not addressing the issue made blackouts a ‘credible’ possibility.

But the ESO confirmed today that it does not predict blackouts, with a spokesman telling MailOnline: ‘We refute this categorically. We are not forecasting blackouts.’

The ESO, which moves electricity around Britain’s system to match supply and demand, has already confirmed it wants to introduce so-called ‘zonal pricing’. 

This National Grid map gives the approximate locations of its electricity transmission network

This would mean power suppliers could be paid more in the South East than other regions if demand is higher, and the ESO believes it would benefit households.

It has cited separate studies by both the Government and Ofgem showing consumer savings from zonal pricing of £15billion to £50billion over a period of 15 to 20 years.

The ESO has claimed lower electricity prices could encourage more competitive production of green hydrogen in Scotland and northern England.

It also argues that the lower costs could prove crucial for decarbonising the UK’s high temperature manufacturing industries such as glass, cement and ceramics.

The ESO has confirmed that it does not predict blackouts in 2028 under its official position.

An electricity pylon carries cables over fields near Amersham in Buckinghamshire (file image)

A spokesman told MailOnline: ‘As a prudent system operator we regularly assess the future challenges to decarbonising Great Britain’s electricity system whilst maintaining security of supply and managing cost.

‘The ESO’s analysis in respect of zonal pricing supports the strategic build out and operation of Britain’s electricity system in a manner that is efficient and ensures that all networks and assets are utilised to their maximum.

‘The ESO’s analysis does not show there will be blackouts because of current market arrangements. It indicates that we will need to continue to use our operational toolkit to balance the electricity system on a national basis.

‘However, we expect that reforms to the wholesale electricity market, the accelerated delivery of electricity networks, and delivery of new generation and storage, will create a more efficient electricity system for the future.’

Former Energy Secretary Claire Coutinho said in March that ‘zonal pricing’ would ultimately save UK households up to £45 on their annual electricity bill

Former Energy Secretary Claire Coutinho said in March that ‘zonal pricing’ had been successfully used in Norway and Denmark and would ultimately save UK households up to £45 on their annual electricity bill.

A Department for Energy Security and Net Zero spokeswoman told MailOnline today: ‘This Government is committed to boosting Britain’s energy security.

‘Our mission is for clean power by 2030 because this is the best way to achieve energy independence and protect billpayers.

‘We have a well-established system in place to secure our electricity capacity needs with reliable, affordable power for future years to come.’

The Government is keen for electricity market reform which it hopes will make the UK a clean energy superpower’, with a secure system protected from price shocks.

Officials are now reviewing responses to the ‘Review of Energy Market Arrangements’ consultation which ran from March until May under Rishi Sunak’s government.

The ‘Capacity Market’, which is the country’s main mechanism to ensure security of supply, sets the volume of electricity procured and is based on ESO advice.

This is further scrutinised by an independent advisory group called the Panel of Technical Experts.