Britain’s worst blackouts in a decade have exposed disagreement between National Grid and the energy regulator over the maximum penalties it could face in the event of any wrongdoing. Ofgem has the power to “impose financial penalties of up to 10 per cent of a licensee’s turnover” if it finds an energy company to have broken its licence conditions. The Times has learnt that Ofgem believes the relevant turnover figure for the National Grid Electricity System Operator, which is responsible for keeping the lights on and is under investigation over the August 9 blackouts, is at least six times higher than the company does. If the operator were to be found at fault and fined this financial year, Ofgem’s figure would imply maximum potential penalties of £140 million, compared with about £22 million in National Grid’s view. Ofgem launched an investigation into all the energy companies involved in the blackouts, which affected a million homes and caused rail chaos.
Times 3rd Sept 2019 read more »