Energy suppliers fined £10m over power cut chaos
THREE energy firms will have to pay £10.5million after a power cut left more than a million people without electricity and caused travel chaos.
The outage last August, triggered by a lightning strike, lasted just 45 minutes but affected homes, hospitals and businesses as well as stranding rail commuters and switching off traffic lights.
Ofgem’s inquiry found the combined loss of two large generators, and the smaller loss of generation at a local level, led to the disruption.
Orsted, which runs Hornsea One wind farm off England’s east coast, and RWE, which manages Little Barford power station in Bedfordshire, each will pay £4.5million to the regulator’s Energy Redress scheme.
UK Power Networks agreed to pay £1.5million. It had begun reconnecting customers without being asked to by National Grid’s Electricity System Operator, which could have jeopardised recovery of the system.
Ofgem said this action had no impact but the network operator – which supplies electricity in the Southeast and East of England – had taken action to stop this happening again.
Jonathan Brearley, Ofgem’s executive director, said: “Consumers and businesses rely on generators and network companies to provide a stable power supply.
“August 9 showed how much disruption and distress is caused to consumers when this does not happen.
“Our investigation has raised important questions about National Grid’s Electricity System Operator, which is why our review will look at the structure and governance of the company.
“As the energy market changes, it is important we future-proof the networks to ensure consumers continue to benefit from one of the most reliable electricity in the world.”
Mr Brearley said the power cut was “exceptional” and generators should have “ridden through” the lightning.
The outage caused a drop in frequency which “should have been manageable” yet left 31 trains stranded.
The Energy Emergencies Executive Committee also published a report yesterday to reduce the chances of similar repeat blackouts.
Business Secretary Andrea Leadsom said the power cut was “unacceptable”.
Ofgem’s Energy Redress scheme aims to “support consumers in vulnerable situations” and “deliver benefits to consumers impacted by the specific issues”. systems