Ofgem has launched an investigation into National Grid Electricity Transmission and SP (Scottish Power) Transmission over the delivery and operation of the Western high-voltage direct current (HVDC) subsea cable, which the two companies undertook as a joint venture.
The £1.3 billion subsea cable transports electricity between Scotland, Wales and England but it has been plagued by late delivery and poor performance.
The investigation will review the performance of National Grid Electricity Transmission and Scottish Power Transmission in delivering the cable. It will consider whether its late delivery means they breached special licence condition 6I, which specifies the expected delivery date of the Western HVDC subsea cable. 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 co-ordinated services).
The investigation will also examine potential breaches relating to the operation of the cable.
Ofgem said, the opening of this investigation “does not imply that we have made any findings about non-compliance by National Grid Electricity Transmission or Scottish Power Transmission”.
Follow the investigation here
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