UK Hands Out Record Fine Over Energy Cable Delays

(@FahadShabbir)

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.

Regulator Ofgem said both companies agreed to fund a massive 158 million redress scheme after it probed the two-year delay to the Western Link Project running between Scotland and Wales.

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.

"The two-year delay restricted renewable generators in Scotland exporting electricity to England and Wales, because at times there was not enough capacity to do so," Ofgem said in a statement.

"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.

The Western Link project, worth about 1.2 billion, is designed to transport electricity -- often from renewable sources like offshore wind farms -- between Scotland and Wales.

The two companies owned the licence for the project and employed a contractor to build it, but the project was delivered late in June 2019 instead of the original date of March 2017.

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.

>