UK grid pays £1,379/MWh for imports during heatwave

Britain's electricity grid operator was forced to pay exceptionally high prices for emergency power imports on Wednesday evening as a severe heatwave strained the country's energy system. The National Energy System Operator (NESO) secured electricity, primarily from the Netherlands, at prices reaching £1,379 per megawatt-hour-roughly 17 times the normal wholesale rate-to prevent potential shortfalls. The additional balancing measures are estimated to have added approximately £11 million to system costs for that single evening.

The crisis unfolded as the Met Office issued a rare red alert for extreme heat across parts of England and Wales, with temperatures forecast to reach between 38C and 40C. In response to the anticipated strain, NESO issued an Electricity Margin Notice for the period between 7 p.m. and 10 p.m. on Wednesday, calling for more generation capacity to be made available. This marked the first such notice issued during a summer period and the first since January 2025. Officials stressed the notice was a routine operational tool to secure a greater safety cushion and did not indicate an imminent risk of power cuts.

Demand for electricity surged as businesses and...