UK Hands Out Record Fine Over Energy Cable Delays
Britain on Tuesday fined energy firms National Grid and Scottish Power a record amount after ruling that delays to a key subsea electricity cable sparked higher prices for consumers
London, (APP - UrduPoint / Pakistan Point News - 30th Nov, 2021 ) :Britain on Tuesday fined energy firms National Grid and Scottish Power a record amount after ruling that delays to a key subsea electricity cable sparked higher prices for consumers.
The settlement, equivalent to $210 million or 187 million Euros, will mostly fund reduced system charges to help lower fuel bills, while some cash will also go towards charities, trusts, organisations and consumers.
"Because renewable generators in Scotland were unable to transport the energy they were generating, National Grid ESO would have sometimes had to reduce the output from windfarm generators to protect the electricity system.
"This ultimately led to higher costs for consumers." The redress package "holds both National Grid Electricity PLC and Scottish Power Transmission PLC responsible for the late delivery", it added.
Delays were caused by problems with manufacturing processes, installing the cables and commissioning tests, Ofgem found.
The two companies did not cause or exacerbate the problems, but held ultimate responsibility for delays sparked by their supply chain, it added.
The link -- which is 422 kilometres (262 miles) long -- is part of Britain's plan to reach zero carbon emissions by 2050.