Residents in west London described hearing a large explosion, followed by a fireball and clouds of smoke, when the blaze ripped through the substation.
The airport had been due to handle 1,351 flights on Friday
The industry is now facing the prospect of a financial hit costing tens of millions of pounds, and a likely fight over who should pay.
"You would think they would have significant back-up power," one top executive from a European airline told Reuters.
Heathrow's rep said back-up systems and procedures had worked as they should.
"It is a wake-up call," he told Reuters. "There is no way that Heathrow should be taken out completely because of a failure in one power substation."
Willie Walsh, the head of the global airlines body IATA and a former head of British Airways, said Heathrow had once again let passengers down.
Heathrow said it had diesel generators and uninterruptible power supplies in place to land aircraft and evacuate passengers safely. Those systems all operated as expected. But with the airport consuming as much energy as a small city, it said it could not run all its operations safely on back-up systems.
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