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National Grid has hit back at national media criticism of its decision to award black start contracts to Fiddler’s Ferry and Drax.
A spokesman said: “A competitive process was launched for these services in February with the relevant information sent to industry participants, detailing the requirements and including location.
“Following the process, we awarded a black start contract to SSE for Fiddlers Ferry and one to Drax which the respective companies announced [last] week.
“Contractual terms are commercially confidential, but we can confirm that the contracts are structured in such a way as to minimise any potential market distortion.”
Black start contracts see companies paid an unspecified sum to keep a power station capable of coming back online without start up power from the grid in the event of a national power outage.
The award of the black start contract was a major factor in SSE’s decision to keep Fiddler’s Ferry, which had been due to close, open for at least another year. The Financial Times today reported that unnamed industry sources had accused National Grid of awarding the contracts in a “blind panic” as it sought to keep power stations open to mitigate the capacity crunch next winter.
Asked when it usually awards black start contracts, and how many it usually awards each year, a spokesman for National Grid told Utility Week: “The usual process of awarding these types of contracts is done bilaterally, directly with providers, as and when required.”
Read Utility Week’s analysis, ‘Coal clings on’ here
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