(Alliance News) - UK energy regulator Ofgem on Tuesday fined National Grid Electricity Transmission PLC and Scottish Power Transmission PLC a total of GBP158 million in redress for a two-year delay in developing the Western Link transmission project.
NGET is part of FTSE 100-listed gas and electric utility National Grid PLC, while SPT is part of Glasgow-based Scottish Power, which is a subsidiary of Bilbao, Spain-based electric utility Iberdrola SA.
The Western Link project is a transmission project designed to provide a subsea electricity link between Scotland and Wales, providing 2,250 megawatts in capacity.
An investigation by Ofgem itself found that the delay was caused by problems with land acquisition, manufacturing processes, and the installation of cables and commissioning tests.
Although the regulator acknowledged National Grid and Scottish Power did not cause or extends the delay, there were still held responsible as licence holders.
"To deliver the UK's climate change ambitions, more of our electricity will come from renewable generation. This is already happening, with offshore wind and other projects in development. Innovative projects such as the Western Link are vital in moving clean energy from where it's produced to where it's needed. However, they must be delivered on time and to the standards agreed. Where they are not, as the energy regulator, we will hold the licensees accountable," said Cathryn Scott, director of Enforcement & Emerging Issues.
Shares in National Grid were down 0.3% at 998.00 pence on Tuesday in London, while Iberdrola's shares were 0.9% lower at EUR9.83 in Madrid.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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