The Office of Gas and Electricity Markets (“Ofgem”) has decided to close its investigation into National Grid Electricity Transmission plc (“NGET”) and SP Transmission plc (“SPT”) and their compliance with obligations relating to the Western HVDC (“WHVDC”) subsea link by way of alternative action.
In accordance with Ofgem’s Enforcement Guidelines, Ofgem has agreed alternative action with NGET and SPT, including a package of remedial action to address the impact on customers that can be targeted and timely.
NGET and SPT acknowledge that the WHVDC link was delivered later than the date set out in Special Condition 6I of their respective Transmission Licenses;
NGET and SPT have agreed a package of measures totalling £158m.
£15m will be paid into Ofgem’s Voluntary Redress Fund, operated on its behalf by the Energy Saving Trust.
The remainder will be returned to consumers via reduced transmission charges.
Further details can be found in the decision document.