Notice of decision to impose a financial penalty on National Grid Electricity System Operator following our investigation into its compliance with its obligations under Standard Licence Condition 16 of the Transmission Licence

Penalty notice

Publication date

Industry sector

Transmission Network

Licence type

Electricity Transmission Licence

The Gas and Electricity Markets Authority ("the Authority") has confirmed its decision 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.

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.

Further information can be found in the decision document.