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National Grid to pay £20 million for substation licence breach

ALN

National Grid PLC has agreed to pay out £20 million to Great Britain’s energy watchdog after failing to properly repair and maintain a key substation in Cumbria.

Ofgem said National Grid Electricity Transmission [NGET] admitted breaching the terms of its licence at the Harker substation, near Carlisle in Cumbria, between November 2016 and November 2021.

These included failing to properly monitor, maintain and repair civil assets or to plan and resource remediation works at Harker.

Harker serves customers in the North West, while it is also a key part of the overall network capability across the Anglo-Scottish border.

There are also renewable energy generators looking to connect to the distribution network in that area.

FTSE 100 listed National Grid  which runs much of Britain’s electricity grid  will make the payments into Ofgem’s energy industry voluntary redress scheme, which supports vulnerable customers.

Cathryn Scott, Ofgem’s regulatory director of market oversight & enforcement, said: ‘Delays and asset failures risk reliability issues, which ultimately impact consumers. This has been a complex and detailed investigation and it was concerning that NGET failed to adequately monitor, maintain and repair some civil assets at Harker 132kV substation during the period being investigated. It is right that NGET has accepted its failings at this substation.’

NGET has since carried out repairs at Harker in 2022.

Ofgem said the Harker substation is being rebuilt and extended as part of the Harker Energy Enablement project, which it said would increase capacity between Scotland and England and ‘prepare the network for future demand, including renewable and storage connections’.

National Grid was not immediately available for comment.

National Grid shares opened 0.8% lower at 1,337.50 pence each on Wednesday morning in London.

By Holly Williams, Press Association Business Editor

Press Association: Finance

source: PA

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