- May 2018
- Decision Proposed:
- Apr 2021
The Gas and Electricity Markets Authority ("the Authority") proposes to impose a financial penalty on National Grid Electricity System Operator (National Grid ESO) for its failure to comply with Standard Condition C16 of its Transmission Licence.
Standard Condition C16 requires National Grid ESO to provide accurate and unbiased forecasts of electricity demand.
Further details can be found in the Penalty Notice.
National Grid ESO has agreed to pay £1.5m (less a £1 financial penalty) in voluntary redress. The redress will be paid into Ofgem’s Voluntary Redress Fund (administered by the Energy Saving Trust) and the money will be used to the benefit of energy consumers.
In accordance with section 27(A) of the Electricity Act 1989 representations and objections with respect to the proposed penalty may be made. Responses must be received by 5pm on 29 April 2021. Further details can be found in the Penalty Notice.
*When the investigation was opened, demand forecasting was undertaken by National Grid Electricity Transmission (NGET). On 1 April 2019 all system operator functions transferred to NG ESO, including responsibility for demand forecasting.