Energy firms pay £10.5m in redress over massive August power failure

Three companies are going to pay £10.5m in redress after massive power cuts last summer caused travel chaos.

An investigation by the energy regulator Ofgem found that more than one million customers were affected when two large generators were taken offline by lightning strikes on 9 August.

The watchdog said the Hornsea One wind farm off the Yorkshire coast and RWE-owned Little Barford in Bedfordshire did not remain connected after the lightning hit.

Hornsea One Ltd, co-owned by Orsted, and Little Barford, operated by RWE, have agreed to make a voluntary payment of £4.5m each into Ofgem’s voluntary redress fund, the regulator said.

It added that UK Power Networks had agreed to pay £1.5m.

That was because the network operating firm had begun reconnecting customers without being asked to by the National Grid Electricity System Operator – potentially jeopardising recovery of the system.

A review is currently examining what lessons can be learned.

Software design flaws on some trains were also blamed for exacerbating travel delays once power was restored.

An inquiry by the Office of Rail and Road found 31 services became stranded because on-board safety systems had to be reset.

The models of train affected by power supply frequency fluctuations have since had a software update to prevent a repeat.

Ofgem’s executive director, Jonathan Brearley, said: “Consumers and businesses rely on generators and network companies to provide a secure and stable power supply.

“August 9 showed how much disruption and distress is caused to consumers across the UK when this does not happen.

“That is why it is right that companies that were unable to keep generating have paid into our consumer redress fund.

“Our investigation has raised important questions about National Grid’s Electricity System Operator (ESO), which is why our review will look at the structure and governance of the company.

“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.”

The findings of a separate, government-backed review, call for a debate on requiring the ESO to hold additional back-up generation.

The Energy Emergencies Executive Committee is tasked with reducing the chances of similar blackouts happening again.

Business Secretary Andrea Leadsom said: “The disruption caused to people and businesses by the power cut in August was unacceptable.

“However, customers can be confident that we have one of the most robust energy systems in the world and today’s report will help us reduce the risks of it happening again and ensure our energy sector is better prepared in the future.”

(c) Sky News 2020: Energy firms pay £10.5m in redress over massive August power failure