National Grid PLC (LSE:NG.) has confirmed that it has created a £50mln emergency support fund for organisations that support vulnerable households, amid warnings that blackouts are a last resort if the UK experiences energy supply issues.
The FTSE 100 company's customer support package comes as chief executive John Pettigrew said that blackouts are still a possibility this winter, though previous warnings that three-hour power cuts may be needed at some point are "unlikely".
He told the BBC: "There could be energy shortfalls in the UK and we will manage that very carefully."
“This isn't a time for people to panic,” he said, adding that the company was currently making sure its electricity infrastructure was ready for the winter.
Some coal-fired power stations may be brought out of retirement, while another measure could include incentives for households and businesses to reduce consumption, especially at peak times.
On the support fund, Pettigrew commented: “We’re under no illusions that this winter will be financially very, very hard for many people and we’re determined to play our part to help ease the financial burden that households will face."
As part of its support package, National Grid will give £10mln to the Fuel Bank Foundation, Citizens Advice and Affordable Warmth Solutions respectively to distribute, as well as a further £20mln to the likes of National Energy Action, the National Energy Foundation and other organisations.
Dave Evans, National Energy Foundation CEO, said: “Into the winter and beyond, National Grid’s donation will enable us to impact over 18,000 households.”
Pettigrew said the UK will need "about seven times" more power infrastructure to be built by the end of the decade compared to the past three decades in order to meet the government's target of a fivefold increase in power from offshore wind.