Nov 30, 2021
National Grid and ScottishPower to pay record £158m settlement for cable project delay
National Grid and ScottishPower have agreed to pay £158m following a probe by the UK's energy market watchdog into delays to a £1.2bn subsea power cable project, a record settlement for the regulator. Ofgem's investigation, launched in January 2020, into the Western Link project found that the two-year delay limited the ability of renewable energy generators in Scotland to export electricity to England and Wales, leading to higher costs for consumers. While National Grid and Scottish Power "Did not cause or exacerbate the delays . . . [they] are ultimately responsible, as license holders, for the delay caused by their supply chain", Ofgem concluded. The project has been criticised in recent years due to the costs to consumers that delays would entail, and wind farms in Scotland being paid to switch off until the cable was completed. "The joint venture recognises it is ultimately accountable for the delay and has therefore agreed to the redress package," National Grid said in a statement.
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