Notice of insufficient system margin predicted – Y report

There could be a potential notice of insufficient system margin (NISM) later this week, according to the Y report. Energy Trader Dorian Lucas said he expects National Grid to issue […]

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By Priyanka Shrestha

There could be a potential notice of insufficient system margin (NISM) later this week, according to the Y report.

Energy Trader Dorian Lucas said he expects National Grid to issue a NISM because demand for power “has increased to such a level that supply is struggling to cope”.

It is a formal communication that lets market players know the grid operator’s usual ‘safety cushion’ is not as big as it would like it to be.

National Grid issued a notice to the energy industry asking for more electricity last November after “multiple plant breakdowns”.

Mr Lucas added the “much higher demand” currently is due to reduced temperatures.

 

However National Grid told ELN it won’t be issuing a notice anytime soon as margins are looking “adequate but we are keeping them under review”.

The demand for gas has also increased but “it hasn’t been much of a problem as imports from Norway and the Continent have increased to adapt to the higher demand level so it hasn’t been as tight”, according to Mr Lucas.

He said power prices have “gapped up quite a lot earlier this week based on the fact we could see a NISM going forward”.

While gas prices are up too, they’re “nowhere as near as much as power”.