§ Nigel Griffiths
We saw evidence this winter that the Government's market-based approach to delivering secure energy supplies is working well. Generators brought mothballed plant back into service in response to rising electricity prices, and signals from NGT that they would like greater capacity going into the winter. The plant margin for winter 2003–04 rose from a projected level of 16.5 per cent. in July to 21.6 per cent. (January 2004 updated to National Grid Seven Year Statement), and electricity supply was sufficient to meet demand throughout the winter. The gas market also worked effectively, and there was sufficient supply to meet market demand throughout the winter.
In June, Ofgem are due to publish their next report into the performance of the electricity and gas industries in delivering security, covering the winter period. This follows from the commitment made in the Energy White Paper that Ofgem would publish six monthly retrospective reports on the delivery of energy security.