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| Price agreed for emergency power | Price agreed for emergency power |
| (35 minutes later) | |
| Power generation firms are to receive close to £1bn to ensure their plants stay open and prevent the lights going out in the coming years. | Power generation firms are to receive close to £1bn to ensure their plants stay open and prevent the lights going out in the coming years. |
| In the government's first capacity market auction more than 49GW of power capacity has been secured at a cost of £19.40 per KW. | In the government's first capacity market auction more than 49GW of power capacity has been secured at a cost of £19.40 per KW. |
| That amounts to a total cost of £960m and will add around £11 to the average household energy bill. | That amounts to a total cost of £960m and will add around £11 to the average household energy bill. |
| The auction will provide power for the year 2018/19. | The auction will provide power for the year 2018/19. |
| In a statement the government said that the auction would "ensure that enough of our existing capacity will remain open at the end of the decade as well as unlocking new investment, including a large independent gas plant at Trafford". | In a statement the government said that the auction would "ensure that enough of our existing capacity will remain open at the end of the decade as well as unlocking new investment, including a large independent gas plant at Trafford". |
| Ed Davey, Secretary of State for Energy and Climate Change, described the outcome as "great news for consumers". | Ed Davey, Secretary of State for Energy and Climate Change, described the outcome as "great news for consumers". |
| The capacity market auction is the first step in ensuring there is enough energy to prevent blackouts in the UK during peak periods of demand. Companies are being paid for promising to be available to plug any shortfalls which may occur. | The capacity market auction is the first step in ensuring there is enough energy to prevent blackouts in the UK during peak periods of demand. Companies are being paid for promising to be available to plug any shortfalls which may occur. |
| In return they will receive a steady payment on top of the electricity that they sell. | In return they will receive a steady payment on top of the electricity that they sell. |
| There are fears of a shortfall because many power plants have closed because of new pollution rules or because they have become uneconomic to run. | |
| Earlier this year, National Grid warned that its capacity to supply electricity this winter would be at a seven-year low due to generator closures and breakdowns. |