Ofgem has opened an investigation into problems over a billion-pound electricity cable that was delivered late by National Grid and Scottish Power.
The cable runs under the sea from Hunterston in Scotland to Flintshire in Wales and was completed by the two energy giants in March 2017, two years later than promised.
On completion the line was hailed as the world’s largest subsea interconnecting cable, carrying surplus electricity from Scottish wind farms to England and Wales.
It was supposed to provide energy for millions of households but has been plagued with problems and has never worked properly.
In 2018 the cable suffered outages three times, while in 2019 it was offline for seven months. In December the cable failed again and the energy regulator has now run out of patience.
Ofgem said: “The investigation will review the performance of National Grid and Scottish Power in delivering the cable. It will consider whether its late delivery means they breached licence conditions. It will also examine potential breaches relating to the operation of the cable.”
Ofgem has the power to fine the two energy suppliers up to 10% of their turnover, while the regulator warned it could also mean higher prices for consumers.
A spokeswoman for National Grid said: “Right now there is enough energy on the grid but there could be an additional cost to consumers the longer the cable remains offline.”
The investigation comes months after National Grid agreed to pay $36 million to customers in New York following a run-in with Democrat Governor Andrew Cuomo.
National Grid had refused to service gas customers in Queens, Brooklyn and Long Island after state regulators rejected a proposal for a new pipeline.
But the company was forced to back down when Cuomo threatened to revoke its New York licence.
