Ofgem secures £20 million redress from National Grid for licence failures
Summary
Ofgem has secured £20 million in redress payments from National Grid Electricity Transmission (NGET) following licence failures at the Harker 132kV substation. NGET accepted failures in monitoring, maintaining, and repairing civil assets, leading to delays in connecting embedded generation.
What changed
Ofgem announced on March 11, 2026, that National Grid Electricity Transmission (NGET) has agreed to pay £20 million into the Energy Industry Voluntary Redress Scheme. This action follows an investigation that concluded NGET failed to adequately monitor, maintain, and repair civil assets at the Harker 132kV substation between November 2016 and November 2021. These failures also contributed to delays in connecting embedded generation to the network, impacting the Northwest region and the Anglo-Scottish border connection.
This enforcement action highlights the critical importance of robust asset management and timely remediation for critical infrastructure. Regulated entities, particularly in the energy sector, must ensure compliance with licence conditions and statutory obligations regarding asset monitoring, maintenance, and repair. While no specific compliance deadline is mentioned for NGET's internal remediation, the significant redress payment underscores the financial and reputational consequences of such failures. Companies should review their asset management practices and ensure adequate resources are allocated to prevent similar breaches.
What to do next
- Review asset monitoring and maintenance procedures for critical infrastructure.
- Ensure adequate planning and resourcing for civil asset repairs.
- Verify compliance with electricity transmission licence conditions.
Penalties
£20 million redress payment to Ofgem's Energy Industry Voluntary Redress Scheme.
Source document (simplified)
Ofgem secures £20 million redress payments from National Grid Electricity Transmission after licence failures at Harker 132kV substation
Publication type: Press release Publication date:
11 March 2026
Related links
- 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 launches investigation into National Grid Electricity Transmission plc (NGET) in respect of its activities at an electrical substation in Cumbria
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- 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 to properly monitor, maintain and repair some civil assets and to plan and resource remediation works on those civil assets at the Harker 132kV substation near Carlisle, Cumbria (“Harker”) in the period November 2016 to November 2021.
Harker serves customers in the Northwest, 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
as required by Section 9(2) of the Electricity Act 1989 and Standard Licence Condition B7, which require 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, 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 (November 2016 to November 2021). 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 National Grid 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.
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