B2B Engagement

Three energy firms are to pay a total of £10.5m following August’s power cut that left over a million people without electricity and hit rail services.

RWE Generation, which runs Little Barford Power Station, and Orstead, which runs Hornsea offshore wind farm, will each pay £4.5m to the UK energy watchdog’s redress fund. Distributor company UK Power Networks has agreed to pay £1.5m.

Ofgem says it will continue to look into the role National Grid played.

Jonathan Brearley, Ofgem’s incoming chief executive told the Today Programme the results of the report were not about “bad practice” but about “two faults happening at the same time which caused the events of August 9th”.

He says today’s Ofgem report recommends three sets of actions for UK energy companies.

The part of National Grid that gives Britain power needs to be set up “the right way”.

New forms of generation, like wind power, need to be a more secure source of supply.

And, Mr Brearley added: “if we do ever have to disconnect people we want to make sure we protect our critical infrastructure and the most vulnerable”.

National Grid says that it has begun its own review and will update an industry standards panel in April.

National Grid said it will work with regulators and “colleagues across the industry, to address the issues raised and make sure that lessons are learned, and any changes made are in the best interests of the consumer,” the company said in a statement.

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