- National Grid
- 11 March 2026 12:41:16
Source: Sharecast
The payment related to breaches by its transmission subsidiary, National Grid Electricity Transmission, at the Harker 132kV substation near Carlisle between November 2016 and November 2021.
The company acknowledged it failed to adequately monitor, maintain and repair certain civil assets at the site, according to findings by Ofgem.
Under the settlement, the FTSE 100-listed utility would pay £20m into Ofgem’s Energy Industry Voluntary Redress Scheme, which funds projects aimed at protecting vulnerable energy consumers and supporting initiatives to reduce carbon emissions.
Ofgem launched its investigation in March 2022 after identifying deterioration of infrastructure at the substation, including damaged concrete that exposed steel reinforcement.
The regulator also found that National Grid had not sufficiently planned repairs or secured spare parts required to complete remedial work, which delayed upgrades at the site and risked reliability issues for the electricity network.
Cathryn Scott, Ofgem’s regulatory director of market oversight and enforcement, said the findings were “concerning,” noting that “delays and asset failures risk reliability issues which ultimately impact consumers.”
The Harker substation is an important part of the electricity network serving customers in north-west England and forms a key link between the English and Scottish grids.
The site is also expected to play a role in supporting connections for renewable energy projects.
National Grid said repairs and changes to its asset management approach at the site were completed in 2022.
The company added that a major investment programme began in 2024 to rebuild and upgrade the facility, including replacing the existing substations with two new ones adjacent to the current site.
The Harker redevelopment forms part of the wider Harker Energy Enablement project, which aims to expand transmission capacity between Scotland and England and prepare the grid for rising demand, including from renewable power and energy storage.
The settlement came as National Grid continues a large-scale investment programme across its networks.
In its most recent half-year results, the company reported adjusted operating profit rising 13% to £2.29bn and said it planned to invest more than £11bn in its energy infrastructure during the year.
At 1222 GMT, shares in National Grid were down 0.93% at 1,336p.
Reporting by Josh White for Sharecast.com.