Ofgem fines firms £10.5m in connection with August power cuts
Government gas and electricity market regulator Ofgem has ordered firms pay £10.5m as a result of the power cuts of 9 August that impacted more than one million consumers.
Ofgem said on Friday that its investigation into the power cuts had found that the combined loss of two large generators, Hornsea One and Little Barford, and the smaller loss of generation at a local level had triggered the disconnection, loss of power and disruption.
Orsted, which co-owns the Hornsea One station, and RWE, the operator of Little Barford, agreed to make a voluntary payment of £4.5m each into Ofgem's redress fund after their stations failed to remain connected after the lightning strike.
As those affected also included many rail passengers, Ofgem worked closely with the Office of Rail and Road - which also published its findings into rail companies' roles in the disruption and found that software flaws on some trains had caused extended delays for commuters.
Ofgem added that it had found that local network operators disconnected and reconnected consumers in response to the loss of power - as expected. However, UK Power Networks began reconnecting customers without being asked to by the ESO, which could have potentially jeopardised recovery of the system.
The watchdog said the move had no impact on 9 August and noted that UK Power Networks had recognised the technical breach, taken swift action to prevent any future reoccurrence and agreed to pay £1.5m into Ofgem’s voluntary redress fund.
Ofgem will be conducting a review into the structure and governance of the ESO.
Jonathan Brearley, Ofgem's executive director, said: "As the energy market changes it is vitally important we futureproof the networks to ensure consumers continue to benefit from one of the most reliable electricity systems in the world."