PARLIAMENTARY DEBATE
National Energy System Operator: Blackout Risk - 15 July 2026 (Commons/Commons Chamber)
Debate Detail
NESO has now appointed an external legal firm to conduct a full investigation into the claims, and a report is to be delivered to the board’s head of risk and controls and to Ofgem in the coming weeks. The legal firm will interview members of the control room, without any other NESO employees present. NESO has already responded publicly that all operational decisions are taken solely by authorised operational control room personnel, and that NESO does not instruct employees to avoid retaining records. We will work closely with Ofgem to monitor both the progress and the outcome of the investigation. However, it would be wrong to pre-empt that outcome, and the investigation must be allowed to run its course.
I want to make it clear that during this period of unprecedented extreme heat, the Great British grid remains stable. No customers were impacted by tight electricity margins, and NESO had a number of tools available to ensure our energy security. Great Britain has one of the most resilient energy systems in the world, and the Government work closely with NESO and the wider sector to ensure that this resilience is constantly maintained. Market notices, such as those issued by NESO during the heatwaves, are standard operational tools that can be used to support energy security, and these were used successfully to maintain grid stability. However, it is important to acknowledge that extreme heat events, such as those experienced this summer, are likely to occur more frequently as our climate continues to change.
My Department will continue to work with NESO and Ofgem to identify any lessons from these events, and to work to ensure that our electricity system remains resilient. Ofgem, as the independent regulator, is also working with NESO to initiate a formal review of events during the June heatwave. I welcome this important transparency, and look forward to working with NESO and Ofgem on taking forward the lessons learned.
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. Again, the Minister did not deny that.
I first raised questions on 2 June. Since then, we have had three public electricity margin notices—warnings to the market that we may be short on supply. I cannot stress enough that this is completely unprecedented. Multiple whistleblowers have now come forward. This, too, is unprecedented. I have raised this matter twice in the House. Despite the seriousness of the allegations, the Government shockingly dismissed me on both occasions as “scaremongering”. Considering the consequences of blackouts to people’s lives, that is nothing short of a disgrace.
NESO has now agreed to hold an external independent investigation. That is positive. However, while the Government wash their hands of this situation, the investigation that has been set up is a complete sham. It will not look into whether the grid is being run securely, or whether there was a breach of security standards on 23 June. It does not grant anonymity to any control room operator who wants to come forward. Those who are not selected by NESO management will have to ask those managers if they can participate, if they have concerns. Remarkably, on an all-staff call on Monday, the chief executive of NESO prejudged the outcome of the investigation by calling the allegations false, while senior management said that the whistleblowers had let them down. Let me be clear: the whistleblowers who have put the national interest over their own careers should be celebrated for their courage and integrity, not denigrated. Will the Government finally get a grip on this? Can the Minister guarantee that every single control room operator who wants to share their concerns will be given the opportunity to do so anonymously?
We take this matter seriously. Nobody is washing their hands of this matter at all. As I have said to the shadow Secretary of State before, though, she is conflating two things, I think wilfully. There are questions to be asked about things that have been raised with her by whistleblowers, which we will now investigate. However, she suggests that the electricity grid was in a state in which blackouts were imminent, which is simply not the case. I gently say to her that it is irresponsible to suggest, in this place and on social media, that our energy system was at risk in recent periods. Electricity margin notices are a standard tool. I do not have time to read all the dates on which electricity margin notices were issued under the previous Government, but I can tell the House that they are a standard tool that has been deployed a number of times. We all have a duty to be careful about our words in this House. Ramping up the rhetoric does not get to the facts that we both share an interest in understanding. I make that point first.
Secondly, can I just endorse the comments she made at the beginning about the critical role that operators in the NESO control room play every day? I was privileged to visit the control room in my role, and to see the job that they do. They have an enormous amount of responsibility on their shoulders; we should recognise how seriously they take their role. This investigation, which is independent from NESO, is so important for uncovering the facts. The terms of reference have been published, and are available on Ofgem’s website. They state clearly that power system managers and other control room personnel who worked on shift during the period in question will be interviewed.
However, it is right and proper that, as I think everyone in the House would expect, we wait for the outcome of an inquiry that will take a matter of weeks to establish the full facts, so that we can use any additional learning from it, but also so that we can continue to ensure that the country is confident that our energy system is resilient. We met the electricity demand on every single one of the days in question, although I do not doubt for a second that it was difficult on some of those days, as it was throughout Europe. The solution to that is to invest further in the stability of the grid, and also to tackle the fundamental question of why our temperatures are rising year after year, the answer to which is climate change.
If the right hon. Lady genuinely believes in the long-term impact of what is happening, I hope she will change course herself and support the policies that would tackle it. In the meantime, we will take this issue seriously. We will investigate all allegations that come to us to ensure that there is confidence in the energy system, and that it is operating exactly as we would expect it to.
“Operational decisions are taken by authorised, trained personnel only.”
Her comments were confirmed by Alastair Martin, the chief strategy officer at Flexitricity, who, in the same session, said:
“I do not think the idea that the head office at NESO told the control room what to do is plausible.”
Does the Minister agree that it is important for public reassurance, especially at a time of threats to energy security, that the line is not crossed in any way between properly evidenced scrutiny on one hand and conjecture on the basis of rumour, which is verging on scaremongering, on the other?
What I said earlier in response to the shadow Secretary of State was not that the allegations that have emerged today were somehow scaremongering. If whistleblowers have raised concerns, it is right and proper that we investigate them fully, and we will absolutely do that. However, it is scaremongering to take to social media or come to the House and somehow imply that we were close to blackouts, which is simply not the case. We have a responsibility in this House not to ratchet up the rhetoric simply to get some retweets on Twitter, but to take seriously the job of balancing our energy system, as we did every single day—and NESO has confirmed that.
As for the hon. Gentleman’s wider point, I agree with him. It is important for us to recognise that grid stability is foundational to everything in our energy system. That is why we are investing record amounts in upgrading the grid so that it is resilient for the future; it is also why we are looking at how we invest in, for instance, storage—which the hon. Gentleman rightly mentioned—so that we can store renewable energy that we are generating until when we absolutely need it, and have more tools at our disposal at moments of tight margins such as the one under discussion. As I have said, however, although at times frequency moved outside the normal operating range, it never moved outside the statutory limits. We met demand for all customers, and there was no disruption for customers at all. That is an important fact that is borne out by all the data that has already been published, although it does not take away from the fact that if we have lessons to learn from those incidents, we will absolutely learn them.
As for my hon. Friend’s final point, let me state very clearly that electricity supplies were maintained throughout the June heatwave. No customer demand was subject to disconnection. Statutory frequency limits were maintained throughout the event, and the largest credible loss that could have occurred was also covered. Let me explain exactly what we mean by the margin in this instance. The margin represents the cushion of spare generation above the peak demand that is maintained by NESO, and at no point did we come close to breaching that. It did not indicate any kind of emergency situation. Demand was met, and those are the facts.
My hon. Friend is right to say that the margin notices are a standard operational tool. Although there is enough generation available on the system to meet demand, NESO would like to have an even bigger cushion on that generation, and that is what the electricity margin notices are for. They were withdrawn because that generation was met, and at no point were any customers disconnected.
I am not sure how much more clearly I can say it to the House, but I can point the hon. Gentleman to some published reading material on the nature of what happened during that week. I have not denied at all that an extreme weather event caused pressure on the grid, but at no time did frequency move outside the normal operating range, at no time did we not meet demand across the country, and at no time were we close to disconnecting anyone whatsoever from the system, let alone to a potential blackout, as he frequently likes to share on social media.
We have a robust and resilient energy system that came under pressure, and it responded exactly as it should. The allegations that have subsequently been made about how decisions were made that day are serious and will be taken seriously in the investigations, and we will learn any lessons that come from that, but that does not detract from the fact that we met electricity demand on every single one of the days that it was under pressure. He can dispute that all he wants, but it is a basic fact.
That is why we are driving forward the biggest upgrade in the grid in generations, and the work that the operators do at NESO is a critical part of that. The system is becoming more complex, which presents opportunities for decentralised energy and for using much more renewables in the system, but it is more complex to manage as well. I am absolutely confident that NESO is able to do that, but this is a lessons-learning exercise and we will learn the lessons from it.
On the right hon. Gentleman’s wider point about documents, I am not going to comment on a process that is now under way to establish the truth. The version of events that I have seen suggests that that is not the case, but we are now doing an inquiry to establish the truth about version control, the sharing of documents and everything else. That is one of the key questions in the terms of reference.
The right hon. Gentleman is right to highlight the Public Office (Accountability) Bill, which we voted on yesterday, because transparency is important. I am not seeking in any way to suggest that we should not be transparent, but I am suggesting that we need to let the inquiry run its course so that we can establish the facts before we pass judgment.
My hon. Friend’s wider point is about how much we talk to the public about resilience. We are quite an outlier in Europe in not engaging with the public regularly on the question of personal and household resilience, whether during floods, storm events or any other incidents. We will take forward work as a Government to make sure that we are talking to the public much more, so that people are prepared for such circumstances and would be able to respond if they were to occur. On his final point, the report will be published when it comes forward, and I absolutely commit to making sure that the House has a copy.
This is one of those rare areas where I think we do have complete consensus—well, maybe not complete consensus, but widespread consensus—across the House. Nuclear is going to play a really critical part in our future energy needs. It provides the stable baseload power that runs on the system 24/7 for decades. Nuclear power that we build today could well still be operating by the end of this century. It is an extraordinary technology that we should be supporting and investing in as much as possible. That is why we are taking forward Sizewell C and Hinkley, but also why we have unlocked the small modular reactor programme and are delivering it at scale, and why we will take forward the reforms in the Fingleton review to make sure we can build things even faster in Britain.
The hon. Gentleman said two things in his question that I think show the problem with the Conservative party’s logic at the moment. First, on an urgent question about the resilience of our grid, he is saying that we should not invest in the future of the grid, which is the very thing that would lead to more issues with grid resilience. [Interruption.] The hon. Gentleman did just say that. If Opposition Front Benchers read his question back, I think they will see that he did.
The hon. Gentleman’s second point is rightly a challenge about constraint payments, which we should not be paying, but I gently challenge him: if we had not built renewables without strategically planning where they were and the grid to connect them into, we would not be paying that money. His party may want to reflect on exactly why that happened. We are fixing the problems we inherited, and that involves investing in the grid.
I thank the Minister for his answers so far and the shadow Secretary of State, the right hon. Member for East Surrey (Claire Coutinho), for bringing forward this urgent question. This is a really important issue and my constituents will be keen that it is dealt with. I think we would all reflect that, as we move more and more towards reliance on technology, grid connection and resilience are hugely important. Could the Minister tell us more about what he is doing to ensure we have grid resilience in Harlow, in the east of England and across the UK?
We are doing two things with the grid that really matter. One is recognising the scale of investment that is necessary to connect not just renewables, but the economic opportunities, growth projects and demand projects that need electricity, and we need the upgrade of the grid to do that. Secondly, we are reforming the grid so that it works much more efficiently. We are reforming the connections queue, which got completely out of control under the previous Government, so that projects can connect, and businesses and households in my hon. Friend’s constituency can benefit from clean, cheap, secure, home-grown power.
On the right hon. Member’s point about the review’s independence, I do not know Eversheds Sutherland, but I am sure it would challenge his view that it is not independent. It has been asked to carry out an independent review. The findings will be reported to the independent director on the NESO board, and it will be shared with Ofgem. I have also committed to sharing it more widely. If there remain questions that the process has not answered, clearly we will look at what further investigation is necessary.
I take this matter incredibly seriously. At the bottom of it all, this is not about trying to conclude some process; it is about trying to understand the concerns of the whistleblowers, who have shared their information with the shadow Secretary of State. They have not shared it with me; all I have seen is a summary of those points in a letter—a one-page letter—from the shadow Secretary of State. I have not seen the detail of the allegations, and she has not shared the details with the Government. However, we take this seriously. We have to get to the bottom of the matter and find the truth, and we will do whatever is necessary to do that.
With that in mind, what is the Minister doing to actively protect whistleblowers who come forward with serious concerns about both public and private organisations, and will the Government heed Liberal Democrat calls to establish an office of the whistleblower to better help and protect these individuals?
On the second point about an office of the whistleblower, I am afraid that is not in my portfolio, but I will certainly pass it on to other Ministers.
We have heard Members raise other problems. In particular, the hon. Member for Tunbridge Wells (Mike Martin) spoke about small blackouts in his constituency, and the Minister brushed that off as a little local problem. The reality is that at the moment we use about 36 GW of power, and during the winter we use about 45GW of power, and that is before we have electrified transportation and before we have invested a huge amount in data centres and artificial intelligence. Blackouts are indicators that the grid is not working. A small blackout in Tunbridge Wells is an indicator that there could be big blackouts in the future. What is the Minister doing to resolve these problems?
Secondly, the hon. Member for Wyre Forest (Mark Garnier) refers to—I do not know where this has come from—a “hostile environment” and “enemies of the company”. I have not said anything of the sort here. People have come forward with allegations and we are going to investigate them seriously, because we appreciate the fact that they have incredible skill and knowledge of what is going on in that control room—better than any of us, frankly—from the job that they do day in, day out. An independent inquiry will now interview them to establish the facts. We should wait for those facts before we jump to conclusions.
Secondly, AI is a huge opportunity for us as a country and it will become increasingly important to have sovereign capability here in the UK. In the energy space, there is a real opportunity to utilise AI to run the system in an even more efficient way. The hon. Gentleman is right to say that we have to get this absolutely right so that local communities get the benefits and not any downsides. We are working through a data centre strategy with my colleagues in the Department for Science, Innovation and Technology. On the energy side, we are working to ensure that we are getting the best possible locations for the benefit of the energy system and consumers.
First of all, he knows that my answer—I hope he never takes it to mean that I am not interested—on the grid in Northern Ireland is always that it is a transferred power, because there is an all-Ireland grid. However, he is right about the connections with NESO. Our interconnectors with Ireland and Northern Ireland are an important part of balancing across the system. When there were storms in Northern Ireland recently and generation was switched off, those interconnectors were vital. The partnership that we have and the partnership between the two system operators are really important, so I will take his points away.
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