UPDATE 1-UK power demand falls as credit crunch bites

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LONDON, Nov 13 (Reuters) - Lower British industrial output because of the economic slowdown will probably cut electricity use this winter, helping generators meet demand comfortably, UK network operator National Grid (NG.L) said on Thursday.

The company has reduced its peak demand forecast for normal winter weather by around 500 megawatts to 58,400 MW, down from its previous forecast of 58,900 MW, and some weeks could see peak demand of 1,000 MW less than had been expected.

"Over recent years our forecasts have predicted a downward trend in electricity demand because of increased energy efficiency, response to higher fuel prices and increases in local electricity generation," National Grid's Network Operations Director Chris Train said.

"However, the actual demand figures are still lower than expected because of the current economic slowdown; in particular we are seeing some larger electricity consumers reducing their production and therefore their electricity use."

Wholsale power prices for winter rose strongly in August and September on concerns that outages at nuclear power stations and environmental constraints on coal fired plants could make supply margins uncomfortably tight in the dark winter months.

But the economic crisis could see the "safety cushion" of generation capacity available beyond that needed to meet expected demand get bigger, Grid said.

(Reporting by Daniel Fineren)