Review and investigation of energy system operation during extreme heat

Recent heatwaves have increased demand on our energy systems. The National Energy System Operator (NESO) is responsible for operating the system and during June’s record temperatures they managed periods of high demand and lower generation. 

We remain very confident in Britain’s security of supply, and at no point has there been any concern about meeting demand. The system has operated reliably throughout, as it is designed to do, with no disruption to customer supply. 

However, Ofgem takes the recent allegations concerning the operation of the electricity system during the period of extreme heat in June, and the associated whistleblowing concerns, extremely seriously. We also consider it of first importance to examine and learn from any system incident to continually improve system security. 

It is important that these matters are examined thoroughly, objectively and transparently. To make sure this happens, We have used our regulatory powers to commission NESO to deliver in depth post-event analysis and assessment of operational activity during a period of extreme heat in June.  This will cover the weather situation, system conditions and operational decisions, including compliance with all relevant security standards and lessons for the future. 

Ofgem has also confirmed it will oversee a separate independent investigation into the specific whistleblowing allegations raised into operation decision making and record keeping at the National Energy System Operator (NESO). 

Confidence in the operation of Great Britain’s electricity system depends not only on the resilience of the system itself, but also on confidence that serious concerns are investigated rigorously and independently.  

Regulatory review of the operation and management of the electricity system during the June heat event 

Ofgem has used its regulatory powers under Condition C7.5 of the ESO Licence to formally commission NESO to deliver post-event analysis and assessment of the incidents of system stress during extreme heat across the week of 22 June.  

This will cover the weather situation, system conditions and operational decisions, including compliance with all relevant security standards and lessons for the future. 

Our focus throughout will be to establish the facts, follow the evidence wherever it leads and act independently in the public interest. 

Read the details of the review of the operation and management of the electricity system during the June heat event.

Independent investigation into the whistleblowing allegations 

On Monday 13 July, NESO announced an independent investigation by law firm Eversheds Sutherland into the specific whistleblowing allegations that have been raised. The investigation will examine operational decision making and record-keeping. 

Ofgem has committed to overseeing this investigation and we are setting out further details. An independent representative panel made up of Jayne Scott the Chair of the Audit and Risk Assurance Committee, Siobhan Duffy the Shareholder Non-Executive Director, and Akshay Kaul Ofgem Director-General, will be receiving all materials directly from Eversheds before any wider distribution. As NESO’s regulator, Ofgem is providing oversight so that the investigation can examine the allegations objectively, independently and thoroughly. 

This independent panel will ensure that all NESO staff who feel they have relevant information will be able to speak directly to Eversheds completely anonymously, and the investigation team will also be allowed to speak to whomever they wish, anonymously.  

Read the Terms of Reference for the whistleblowing investigation on the NESO website. 

NESO staff can also directly use Ofgem’s own whistleblowing process or email: whistle@ofgem.gov.uk.