Burnham announced yet another state-owned energy body in his conference speech last week. Before he builds another one, Guido took a closer look at the one that already exists…
The National Energy System Operator was carved out of the privately-owned National Grid and handed to the state on 1 October 2024. Less than two years later, it can’t forecast supply and demand, can’t meet its regulatory deadlines, and is now being investigated by Ofgem. During June’s heatwave, the grid came close to the edge. Claire Coutinho, Shadow Energy Secretary, told Parliament:
“I have been approached by multiple whistleblowers within our grid operator. Their allegations are: first, that on 23 June, the operator failed to meet the grid security standards put in place to prevent blackouts; secondly, that the corporate affairs team interfered with operational decisions—that is not something that the Minister denied—putting the reputation of the operator above security of supply; and thirdly, that operational decisions are being recorded in live documents, with no audit trail.”
Ofgem commenced a formal investigation two days later. A confidential report seen by The Times also found NESO is “flying blind” on forecasting, which pushes up bills and raises the risk of blackouts. It has also missed regulatory deadlines for the risk and electricity planning reports Ofgem requires. Its annual frequency risk control report has been suspended entirely… Chief executive Fintan Slye was set to get updates on the inquiry into his own organisation until an outcry forced him to step back. Meanwhile, as Guido revealed, NESO is spending £75,000 plus VAT hunting the staff who leaked the story, not investigating the near-miss itself. What could possibly go wrong with Burnham’s latest state-owned project?
Kemi Badenoch at the 1922-ConHome bash last night:
“I did praise [Burnham] for his stamina, it was amazing. All I had to do was sit back and lie there. I didn’t have to do anything at all…”