Heathrow Substation Outage: NESO Review

Claire Coutinho Excerpts

Wednesday 2nd July 2025 Commons Chamber

[Claire Coutinho (East Surrey) (Con)]

Thank you, Mr Deputy Speaker. I feel older, wiser and significantly more sleep-deprived.

I thank the Minister for advance sight of his statement. I also thank NESO for its rapid work. The report is clear that there have been serious failings by National Grid to fix an issue that it knew about for seven years. The Minister is right; that is unacceptable. What is most important, though, is what happens now.

I have some questions for the Minister. First, who at National Grid made the decision to defer critical maintenance of the transformer in 2022? He said that he would hold them accountable, so how will he do that? He spoke about breaching licence conditions. What are the penalties for doing that and what accountability mechanisms will he use? Secondly, the report says that the North Hyde site did not meet modern standards on physical barriers between transformers. Can the Minister confirm he has asked National Grid to review substations with transformers built before the current standards were put in place? Thirdly, what steps will he take to look at the resilience of our energy system, particularly in the light of the heightened geopolitical risk that we all face?

The key message that we should take from the report on the Heathrow blackout is the importance of critical national infrastructure to our energy security and our national security. In that regard, it is the Secretary of State for Energy and Climate Change who is playing with fire. A week after the blackout hit Heathrow, Spain and Portugal gave us a stark warning of what happens when countries fail to protect their energy security: public transport down, payment systems down and millions of people unable to cook, travel or contact their families. Tragically, people lost their lives. In the case of North Hyde, the blackout affected schools, the London Underground, Hillingdon hospital and 70,000 customers, some of whom had to move out of their homes. That is the price we pay when we do not take energy security seriously. It is not a nice-to-have—energy is a basic need—and yet this Government are putting our energy at risk.

The national security strategy that the Government published just last week included 12 mentions of climate but not a single mention of the risk that China poses to our energy system. Last year, our intelligence services warned that Chinese state-sponsored hackers were working to disrupt and destroy critical infrastructure in the event of conflict, and yet the Secretary of State is rushing to make Britain dependent on Chinese solar panels, Chinese rare earths and Chinese batteries in just five years’ time. We have just seen China limit the export of critical minerals in its trade war with the US. We have seen kill switches found in Chinese inverters. The US intelligence services have warned us about the risk of surveillance devices in Chinese wind turbines.

I first wrote to the Secretary of State eight months ago, asking him to publish an assessment of what his targets mean for our reliance on Chinese imports. He has not even bothered to reply. If the Secretary of State wants to hand over the keys of our energy supply to the Chinese Communist party, he should come to this House and explain why.

We are lucky enough in this country to be surrounded by our own gas fields, but the Secretary of State does not care. This is a man who would rather import gas from Norway, from the very same fields in the North sea that he is banning Britain from using; who is pouring concrete down our gas wells; and who is blocking off any contingency plan that Britain might need in a crisis. I do not say this lightly, but this is a man who is putting our national security at risk. Today we are talking about the first transformer fire in a decade in this country and he did not even bother to turn up. That is the problem. The Secretary of State might prefer to be in Brazil, Baku, Beijing or wherever he is today, but he should be here to explain himself, because as the former head of MI6 said, he is pursuing an energy policy that is “completely crazy” when it comes to national security.

I want clean energy from nuclear, from small modular reactors and from the next generation of British innovation, but first and foremost I want energy that keeps the lights on and keeps bills down. This Government are going to leave us completely reliant on foreign imports: from China, from Norway, from Qatar—from anywhere as long as it is not Britain. NESO and Ofgem will do their work, but the Minister must do his work too. Alongside the work of the North Hyde report, can he confirm that he will come back and update the House on his plans to protect the energy resilience of this country?

[Michael Shanks]

I was going to start—and I will, regardless of the rest of that speech—by warmly welcoming the right hon. Lady back to her place as the shadow Secretary of State. I will miss sparring with my Scottish colleague, the hon. Member for West Aberdeenshire and Kincardine (Andrew Bowie), although I am sure we will still have opportunities to do so. The right hon. Lady might come to miss the lack of sleep at home compared with the noise in this place, but she is very welcome back. She has obviously taken the last few months to write a wrap-up speech on a whole range of issues, and I am glad to give her the opportunity to pontificate here on many of those things, but let me stick to the questions that related to the statement that I have delivered to the House today.

The right hon. Lady asked about the role that National Grid has played. Ofgem has opened an enforcement investigation into this incident to get to the bottom of exactly what National Grid has or has not done, and whether there are possible breaches of licence. That investigation should now take its course. There are clearly serious questions to answer, and that is exactly the point that I put to National Grid today. I have asked for an immediate response on what action it is taking and for assurances that there are no further maintenance backlogs that it has not acted on, and I expect that by the end of this week. Ofgem has also instructed a wider audit of maintenance work across the energy system, which will identify if there are any similar issues. On the point about being held accountable, clearly I am going to wait for the outcome of Ofgem’s investigation. It is the responsibility of Ofgem as the regulator to determine whether National Grid is in breach of any of its licence conditions and what the appropriate action should be if it is. I will wait for those findings to come through.

The right hon. Lady raised an important point about the physical barriers. Clearly there are differences because the time at which some of our infrastructure was built and the different standards that were in place at different times. We need to make a wider review to see what is actually possible with some of this infrastructure; it was not always possible to build to the standards we now expect, but everything that is being built now is being built to the highest standards. I want the same assurances that she has called for: to know that anything that was built previously is safe.

On the wider resilience questions, I am not going to get into a back-and-forward on the frankly quite ludicrous claims that the right hon. Lady made. I hope this is not an indication of the tone we can expect in the years ahead, because there are some difficult decisions for us all to wrestle with. There is the really important question about delivering our energy security in, as she says, an increasingly uncertain world. We are sprinting towards clean power to remove the volatility of fossil fuels from our system. She opposes all of that investment. There is also a critical role to play in upgrading the network infrastructure across the country, which her party also opposes.

There are some really searching questions for the Conservatives—who were, of course, in charge of this infrastructure for 14 years—about their role and what part they want to play. It is easy to shout from the sidelines with accusations. It is far more useful and important for a party that was in government for 14 years and is now the official Opposition to come up with some credible questions about how we deliver the energy system of the future. We are going to get on with delivering it.