Lack of investment could lead to Blackouts warns National Grid CEO

Power Lines ‘will decay’

National Grid CEO John Pettigrew has told the press that he fears that power lines in some parts of the country will ‘decay’ without increased spending.

Pettigrew said, “The risk of a loss of supply increases as a result of not spending as much on asset health, because the assets are deteriorating as they age.”

He went on to point out that a £40 million project to replace one of two cables serving the city of Sheffield will be in jeopardy and that it would result in the city relying on a single line that would put it at risk of blackouts.

National Grid had proposed more than £3 billion of projects focused on improving the reliability of the existing electricity networks but these have been cut by as much as 80%.

An Ofgem spokesperson said, “National Grid has failed to demonstrate the need to replace this cable, citing, for example, a single survey from 2015 as evidence to justify spending a proposed £40 million of consumers’ money on this repair.

“So, we have left the door open for them to come back to us with better evidence and, if they provide it, we, of course, stand ready to fund this repair.”

They added: “Maintaining a strong and reliable network for consumers is our top priority, and wherever network companies have demonstrated they need vital funding to do this we have given them the go-ahead.

“We will not green-light spending billions of consumers’ money on poor or poorly evidenced proposals. However, we have left the door open for companies to come back to us with more evidence on the work they need funding for.

“We now expect them to come forward with better-evidenced plans and stand ready to deliver funding when they do so.”

Investment spending

His comments come after Ofgem announced plans to cut investment in energy networks and rejected proposals from network companies that the cost of replacing old power lines should be passed onto customers.

Many energy companies are also complaining that the proposed spending limits will ensure that the UK is ill prepared to face the challenges of the future such as the expected surge in demand for more electric cars and heat pumps.

Ofgem, on the other hand, is holding out, stating that customers should not pay more on their energy bills to pay for such projects. 

Growing unrest over proposals

There is also concern over Ofgem’s decision to slash the total investment allowed in new electricity grid projects, with many energy companies complaining that the spending limits will ensure that the nation is not ready for the increase in energy demand as more electric cars, heat pumps and infrastructure are introduced.

National Grid, along with SSE and Scottish power, has reached a stalemate with Ofgem over a settlement that would see investment returns from next year halved and billions of pounds worth of investments cancelled.

Further Reading

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