REG - OFGEM - Ofgem secures £20m from National Grid for failures

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RNS Number : 1081W  OFGEM  11 March 2026

Ofgem secures £20 million redress payments from National Grid Electricity
Transmission after licence failures at Harker 132kV substation

National Grid Electricity Transmission plc (NGET) has today (Wednesday 11(th)
March 2026) agreed to pay £20 million into Ofgem's Energy Industry Voluntary
Redress Scheme after accepting historic failures relating to the Harker 132kV
substation, near Carlisle, Cumbria ("Harker").

The breaches included failing properly monitor, maintain and repair some civil
assets or to plan and resource remediation works on those civil assets at
Harker in the period November 2016 to November 2021.

Harker serves customers in the North West and there is embedded generation
(including renewable generation) seeking to connect to the distribution
network in the locality. The substation also connects to the 132kV
transmission network in Scotland, making it part of the overall network
capability across the Anglo-Scottish border.

Ofgem's investigation, launched in March 2022, concluded that NGET failed to
take appropriate steps in relation to the condition of some civil assets at
Harker and delayed the connection of some embedded generation in the locality.
Specifically, NGET has accepted historic failures to:

 * adequately monitor, maintain and repair some civil (non-electrical) assets at
Harker, allowing deterioration, including spalling concrete exposing steel
reinforcement, to continue

 * operate a more formal and thorough inspection and risk assessment regime for
those structures; and

 * adequately plan repairs and source sufficient spare parts to carry out repairs
on those civil assets, contributing to the cessation of upgrading works being
undertaken at the same time that were necessary to fulfil a connection
agreement.

Section 9(2) of the Electricity Act 1989 and Standard Licence Condition B7
requires transmission licence holders to:

 * develop and maintain an efficient, co-ordinated and economical transmission
system

 * facilitate competition in electricity generation and supply.

 * ensure adequate resources to properly and efficiently operate the transmission
business.

NGET has already undertaken repairs to those civil assets at Harker in 2022
and acknowledged the failures set out above.

Cathryn Scott, Ofgem's Regulatory Director of Market Oversight &
Enforcement said:

"Delays and asset failures risk reliability issues, which ultimately impact
consumers.

"This has been a complex and detailed investigation and it was concerning that
NGET failed to adequately monitor, maintain and repair some civil assets at
Harker 132kV substation during the period being investigated.

"It is right that NGET has accepted its failings at this substation."

The Harker 132kV substation is being rebuilt and extended as part of the
Harker Energy Enablement project to increase capacity between Scotland and
England and prepare the network for future demand, including renewable and
storage connections.

Local investment programmes by NGET and other networks (including 400kV and
132kV substation rebuilds) highlight Harker's role in enabling cross-border
power flows and clean energy integration.

Background

The Energy Industry Voluntary Redress Scheme is operated independently by the
Energy Saving Trust on behalf of Ofgem. It distributes voluntary payments from
companies to energy-related projects that support vulnerable consumers, drive
innovation, and reduce carbon emissions across Great Britain. As of July 2025,
the scheme has allocated £181 million to 721 projects, supporting over
800,000 households. Redress funds are used when direct compensation cannot be
appropriately targeted, ensuring money benefits consumers via charities and
community organisations

Section 9(2) Electricity Act 1989 imposes a duty on transmission licensees to
develop and maintain an efficient, co-ordinated and economical transmission
system and to facilitate competition in the supply and generation of
electricity.

SLC B7 (Transmission Licence) contains an obligation that licensees have
resources available at all times to properly and efficiently run its
transmission business and to comply with its licence and statutory
obligations.

Ofgem opened the enforcement investigation into Harker on 24th March
2022: Investigation into National Grid Electricity Transmission plc and its
compliance with obligations under Section 9 of the Electricity Act 1989 and
SLC B7 of its Electricity Transmission Licence in relation to the Harker
substation | Ofgem
(https://www.ofgem.gov.uk/publications/investigation-national-grid-electricity-transmission-plc-and-its-compliance-obligations-under-section-9-electricity-act-1989-and-slc-b7-its-electricity-transmission-licence-relation-harker-substation)

Ofgem approved of the Final Needs Case of the Harker Energy Enablement Project
on 30th October 2023: Harker – Decision on the project’s Final Needs Case
| Ofgem
(https://www.ofgem.gov.uk/decision/harker-decision-projects-final-needs-case)

 

 

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