Investigation into National Grid Electricity Transmission plc and its compliance with obligations under Section 9 of the Electricity Act 1989 and SLC B7 of its Electricity Transmission Licence in relation to the Harker 132kV substation

Civil assets are the non-electrical assets at a substation, such as concrete foundations, plinths and support structures.

Case outcome

In accordance with our Enforcement Guidelines, Ofgem has decided to close this investigation by way of Alternative Action.

Read the full case action

The decision to close this investigation was made as a consequence of NGET accepting that it had failed to adequately monitor, maintain and repair some civil assets at Harker, and Ofgem’s findings that NGET was thereby:

(a)    failing to develop and maintain an efficient, co-ordinated and economical system of electricity transmission; and  

(b)    failing to have in place, or to apply properly, resources needed to ensure that it was at all times able to properly and efficiently carry on the transmission business and comply in all respects with its obligations under the Electricity Transmission licence and those parts of the Electricity act 1989 that relates to the transmission business,

as required by section 9(2) of the Electricity Act 1989 and SLC B7 of its Transmission Licence.

Section 9(2) of the Electricity Act 1989 imposes a general duty on the holder of a transmission licence to (a) develop and maintain an efficient, co-ordinated and economical system of electricity transmission; and (b) to facilitate competition in the supply and generation of electricity.

SLC B7 of a Transmission Licence states that ‘The licensee shall at all times act in a manner calculated to secure that it has available to it such resources, including (without limitation) management and financial resources, personnel, fixed and moveable assets, rights, licences, consents and facilities, on such terms and with all such rights, as shall ensure that it is at all times able: (a) to properly and efficiently carry on the transmission business; and (b) to comply in all respects with its obligations under this licence and such obligations under the Act as apply to the transmission business including, without limitation, its duty to develop and maintain an efficient, co-ordinated and economical system of electricity transmission’.

Ofgem’s decision to close this investigation is subject to NGET paying £20 million to Ofgem’s Energy Industry Voluntary Redress Scheme.

This agreed action by NGET now concludes this matter.