Ofgem to probe National Grid and Scottish Power over undersea cable
By Abigail Townsend
Date: Tuesday 28 Jan 2020
(Sharecast News) - Ofgem, the UK energy regulator, has launched a probe into National Grid and Scottish Power over a £1.3bn undersea cable project.
National Grid Electricity Transmission and Scottish Power Transmission formed a joint venture to deliver and operate the high-voltage direct current (HVDC) subsea cable, known as the Western Link. The cable, which is 850km long and runs undersea for 770km, transports electricity to Wales and England from wind farms in Scotland.
But on Tuesday, Ofgem said it would be reviewing the performance of the companies over the project. Originally slated to start in 2015, the cable did not start operating until the end of 2017, and was not at full capacity until late 2019.
In a statement, the watchdog said the probe would look at the delivery of the cable, and "consider whether its late delivery means they breached special licence condition 6I, which specifies the expected delivery date".
It continued: "Additionally the investigation will consider compliance with standard licence condition D (provision of transmission services) and section 9(2) of the Electricity Act 1989 (provision of economical, efficient and coordinated services). The investigation will also examine potential breaches relating to the operation of the cable."
It added that the opening of the probe did "not imply that we have made any findings about non-compliance", however.
National Grid nor Scottish Power did not immediately respond to a request for comment.
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