Regulatory Other

On 28 January 2020 Ofgem formally opened an enforcement investigation into National Grid Electricity Transmission plc (NGET) and SP Transmission plc (SPT) over the delivery and operation of the Western HVDC subsea cable. The investigation considered whether the late delivery of the WHVDC project — originally due for delivery by 31 March 2017 per Special Condition 6I of both companies' Electricity Transmission Licences — constituted a breach. The scope also covered compliance with standard licence condition D (provision of transmission services) and section 9(2) of the Electricity Act 1989 (provision of an efficient, co-ordinated and economical electricity transmission system), and potential breaches relating to the operation of the cable. The decision to open the investigation was prompted in part by the third extended cable outage commencing 10 January 2020, on top of the two extended outages during 2019. Ofgem stated that the opening of the investigation did not imply any findings of non-compliance had been made. The investigation was led by Ofgem's Enforcement team and ultimately closed via Alternative Action on 30 November 2021 with a £158 million redress package.