Ofgem opens investigation into National Grid Electricity Transmission (NGET) for North Hyde Substation fire
Press release
- Dyddiad cyhoeddi
- Sector diwydiant
- Transmission Network
- Math o drwydded
- Electricity Transmission Licence
An official enforcement investigation into National Grid Electricity Transmission (NGET) has been opened following the North Hyde Substation fire on Thursday 20 March 2025, Ofgem has today (Wednesday 2 July 2025) confirmed.
Based on today’s report and findings, Ofgem will examine the incident, its causes and take further action as necessary.
In the NESO final report, it has been established that the root cause of the fire was a preventable, technical fault – Ofgem will review whether NGET complied with the relevant legislation and licence conditions relating to the development and maintenance of its electricity system at North Hyde.
The regulator has also today confirmed that we will commission an independent audit into NGET’s critical assets and their status, to satisfy Ofgem on whether the failings identified in NESO’s report into North Hyde were one-off in nature, or more systemic across the National Grid estate.
Ofgem also intends to discuss with the Civil Aviation Authority (CAA) what lessons can be learnt from the North Hyde incident for the wider resilience of the transport system, and to work with the Department for Energy Security and Net Zero on NESO’s recommendations relating to the wider resilience of the energy system.
Akshay Kaul, Director General for Infrastructure at Ofgem, said:
“The North Hyde substation fire resulted in global disruption, impacted thousands of local customers, and highlighted the importance of investment in our energy infrastructure.
"As a result of the report’s findings, we have opened an investigation into National Grid Electricity Transmission (NGET). We have also commissioned an independent audit of their most critical assets.
“Ofgem will also further examine the incident and its causes and take further action as appropriate.
“We expect energy companies to properly maintain their equipment and networks to prevent events like this happening. Where there is evidence that they have not, we will take action and hold companies fully to account.
“Britain has one of most reliable energy systems in the world and thankfully incidents like this are rare. We must continue to invest in the system to maintain that resilience.”
The NESO report - which was commissioned by the Department for Energy and Net Zero (DESNZ) and Ofgem - highlights a number of key recommendations and lessons learnt for the prevention and management of future power disruption events.
This includes revising Critical National Infrastructure policies responsible for the essential systems and assets powering Great Britain. Ofgem will work closely with government, industry, and wider stakeholders to ensure all agreed recommendations are properly implemented.
On background
- We are opening an enforcement investigation today [Wednesday 2 July] into NGET and its compliance with Section 9(2) of the Electricity Act 1989 and Standard Licence Condition B7(1) of its Electricity Transmission Licence in relation to North Hyde substation. Section 9(2) of the Electricity Act 1989 requires National Grid Electricity Transmission to develop and maintain an efficient, co-ordinated and economical system of electricity transmission and facilitate competition in the supply and generation of electricity.
- Standard Licence Condition B7(1) of the Transmission Licence which relate to the licensees’ obligation to secure that it has available resources to ensure that it is at all times able to properly and efficiently carry on the transmission business and to comply in all respects with its obligations under the Electricity Transmission licence and the Electricity Act that apply to the transmission business.
- The opening of this investigation does not imply that we have made any findings about possible non-compliance by National Grid Electricity Transmission plc.
- Ofgem does not manage assets - licensees have a responsibility to manage their networks economically and efficiently. Our role is to review investment plans and ensure that licensees are funded for works which are well justified and deliver necessary grid upgrades with these funds.
- Our RIIO ET3 Draft Determinations Settlement has been undertaken in advance of the North Hyde report findings being published. Our review has not changed as a result of this report.
- We have increased our reporting requirements in RIIO3 to ensure we have a more holistic understanding of network condition. This was instigated in 2023/24.
- This incident highlights a range of elements other than just network condition and age. Through RIIO3, we want to provide more direction over network design, which aims to minimise risks associated with asset failures.
- View more information on the RIIO3 announcement.