The businesses in Edinburgh’s vibrant Grassmarket area are sounding the alarm over the detrimental effects of frequent power outages, which they claim threaten the city’s esteemed reputation as a premier destination for Hogmanay celebrations. These hospitality establishments, comprising bars, restaurants, and hotels, have stated that these network issues have persisted for several years, prompting a call for immediate action to rectify what they describe as "systemic vulnerabilities" within the energy infrastructure.
This coalition, known as the Grassmarket Hospitality Operators (GHO), has reported suffering "significant financial losses" and damage to their reputation, particularly during the crucial festive trading period.
In response to these concerns, SP Energy Networks, the company responsible for electricity transmission and distribution, has issued apologies for the outages and announced plans to increase staffing levels during the Hogmanay festivities. They also expressed their willingness to engage with local businesses in the new year to discuss future investments aimed at improving service reliability.
The latest outage occurred on Hogmanay and was attributed to a "recurring power interruption." However, the numerous businesses affected in the Grassmarket have noted that this incident is just one in a series of ongoing supply issues. For instance, they highlighted a power outage on a recent Tuesday evening, traced back to a fault in an underground cable on Kings Stables Road, as well as another incident on December 11, linked to a failure in a low-voltage cable joint in the same vicinity. Although alternative feeds temporarily restored power, the group lamented that efforts to locate and fix the faults resulted in multiple interruptions.
In a statement, GHO conveyed that their members felt "crippled" by the loss of holiday trade due to these persistent energy failures and urged SP Energy Networks to take swift corrective measures. They pointed out that some venues faced multiple power cuts each day throughout the festive season, significantly impacting their Christmas revenue.
The group revealed that during one particular weekend in December, businesses in the Grassmarket lost the entirety of Friday night’s services and all of Saturday’s lunch service, leading to thousands of pounds in lost income across various establishments. Despite these challenges, fixed business expenses remain; staff still need to be compensated in case of power restoration, perishable food becomes waste, and customer bookings are lost.
In light of these circumstances, the GHO has reached out to Nicola Connelly, the CEO of SP Energy Networks, demanding urgent action and highlighting that similar outages have been a recurring issue during the Christmas season since 2021. Their letter emphasizes that these "repeated failures" are imposing a heavy financial burden on local hospitality businesses, undermining Edinburgh’s reputation as a tourist destination.
The correspondence also mentioned that past outages involved faults in both low and high voltage systems, affecting numerous customers. An engineer who assessed the latest issues reportedly indicated that the local substation was "too small" to meet the demands.
In their email, GHO underscored the need for immediate and permanent solutions, stating: "While we appreciate SP Energy Networks’ apologies and the promise of a review of network conditions, the ongoing nature of these outages reveals systemic vulnerabilities that necessitate urgent action. The current reliance on reactive repairs does not adequately protect businesses and consumers in this vital hospitality sector."
They have requested a detailed timeline for planned upgrades or reinforcements to the network, along with any interim solutions aimed at reducing current disruptions. Furthermore, they proposed the creation of a dedicated liaison group to ensure businesses receive regular updates.
In response to these concerns, a spokesperson from SP Energy Networks acknowledged the intermittent power supply issues affecting the Grassmarket and assured all customers and businesses that efforts are underway to resolve the matter promptly, especially in light of the upcoming Hogmanay celebrations. They explained that the previous day’s outages stemmed from low voltage protection fuse operations triggered by an intermittent fault, which left customers without power for about two hours in the afternoon and again later that evening. Recognizing the impact of these disruptions during such a bustling time of year, they extended their apologies for the inconvenience caused.
To further reassure customers, the spokesperson noted that staff members were actively visiting businesses in the Grassmarket to confirm their commitment to resolving the issues and that additional personnel would be on standby throughout Hogmanay. They also expressed openness to meeting with affected groups in the new year to discuss investment plans aimed at strengthening the network and minimizing future disruptions.
In December 2025, it was announced that significant funding—amounting to billions of pounds—will be allocated to upgrade Scotland's energy grid as part of a broader £28 billion investment across the UK. This will result in an increase of about £108 in household energy bills. Under Ofgem’s approval, Scottish Power, which manages the network in central and southern Scotland, will initially invest £2 billion from a larger £12 billion package, while SSE is set to contribute £3.4 billion.
Moreover, SP Energy Networks plans to construct twelve new major substations, upgrade 450 kilometers of existing circuits, reconduct 87 kilometers of overhead lines, and replace 35 kilometers of underground cables from 2026 to 2031.
