Three British firms to pay £10.5m following summer power cut

Three British energy companies have agreed to pay £10.5 million to the energy watchdog’s redress fund over the power cuts in August which left more than one million customers without power and caused travel chaos, regulator Ofgem has said.

Ofgem’s investigation into the power cuts on August 9 found that the combined loss of two large generators, and the smaller loss of generation at a local level, together triggered the disconnection, loss of power and disruption to more than one million consumers.

It said on Friday that two large power stations, Hornsea One Ltd and Little Barford, did not remain connected after the lightning strike.

Hornsea One Ltd, co-owned by Orsted, and Little Barford, operated by RWE, have agreed to make a voluntary payment of £4.5 million each into Ofgem’s redress fund, it added.

The regulator also said that UK Power Networks had begun reconnecting customers without being asked to by the National Grid Electricity System Operator (ESO), which could have potentially jeopardised recovery of the system.

Ofgem said that UK Power Networks has recognised this technical breach, taken swift action to prevent any future re-occurrence and agreed to pay £1.5 million into its voluntary redress fund

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