Regulatory Other

On 30 November 2021 the Gas and Electricity Markets Authority (Ofgem) closed its enforcement investigation into National Grid Electricity Transmission plc (NGET) and SP Transmission plc (SPT) over the late delivery of the Western HVDC subsea link, resolved by way of Alternative Action under Ofgem's Enforcement Guidelines. NGET and SPT acknowledged that the link was delivered later than the 31 March 2017 deadline set by Special Condition 6I of their Electricity Transmission Licences and agreed a package of measures totalling £158 million. Of this, £15 million was paid into Ofgem's Voluntary Redress Fund (operated by the Energy Saving Trust), and the remaining £143 million was returned to consumers via reduced Transmission Network Use of System (TNUoS) charges, with the necessary Regulatory Asset Value and revenue adjustments occurring in 2022/23. Ofgem found that the root cause of the delay derived from problems with land acquisition, manufacturing processes, installation of cables and commissioning tests, and acknowledged that no circumstances were identified where the actions of NGET and SPT may have exacerbated or caused delays. The decision document (OFG1161) released NGET, SPT and the JV from any further enforcement action on this matter, subject to the agreed redress being issued. At the time of settlement, this was the largest enforcement redress package ever agreed by Ofgem with a GB transmission licensee.