National Energy System Operator: Blackout Risk Debate

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Department: Department for Business and Trade

National Energy System Operator: Blackout Risk

Lindsay Hoyle Excerpts
Wednesday 15th July 2026

(4 weeks ago)

Commons Chamber
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Claire Coutinho Portrait Claire Coutinho
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Control room operators at the National Energy System Operator have the life-or-death job of balancing our electricity supply and demand. If they do not get it right, we will have blackouts, and in blackouts, people die; it is that serious. That makes what I am about to say all the more extraordinary.

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?

Lindsay Hoyle Portrait Mr Speaker
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Order. Can I just remind those on the Front Bench—it is nothing personal; far from it—that you have only two minutes? Please, can we can try to stick to the rules? It makes things hard when we do not.

Michael Shanks Portrait Michael Shanks
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First, I reiterate what I said at the beginning of the statement. The shadow Secretary of State raised these concerns about whistleblowers who had been in touch with her for the first time at Department for Energy Security and Net Zero oral questions. I said to her, in that session, that if she had details, she should share them with the Department. She did that, and subsequently we have taken this matter incredibly seriously. A process has been put in place; an independent review will be conducted, taking into account the information that she has shared. If she has more information from subsequent whistleblowers, I am sure that she will share that with us.

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.

Lindsay Hoyle Portrait Mr Speaker
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I call the Chair of the Energy Security and Net Zero Committee.

Bill Esterson Portrait Bill Esterson (Sefton Central) (Lab)
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Last week the Committee heard from Claire Dykta, the director of strategy and policy at NESO, who told us:

“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?

Michael Shanks Portrait Michael Shanks
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I welcome my hon. Friend’s comments. Let me first reiterate that, as I said a moment ago, incredibly skilled staff work in the control room 24/7 to ensure that we are balancing our electricity demand and supply across the country, and have done so without any disruption to that supply; I pay tribute to the work that they do.

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.

Lindsay Hoyle Portrait Mr Speaker
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I call the Liberal Democrat spokesperson.

Will Forster Portrait Mr Will Forster (Woking) (LD)
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These allegations are extremely serious. If it is true that NESO bosses instructed control room staff to conceal evidence of grid instability from public scrutiny, that is a shocking breach of trust from a taxpayer-owned body. The investigation must be genuinely independent and its full findings must be published openly, not quietly filed away. However, let us also be clear about the fact that this is not a verdict on renewables, much as science-denying climate change sceptics wish to push that idea. It is a warning sign that our grid is straining under record heat, that ageing gas plants are failing, and that there have been years of under-investment in storage and capacity. The Government must get very serious about grid resilience. Will the Minister guarantee protection for those who have come forward, commit himself fully to a genuinely arm’s length investigation, and guarantee full transparency in respect of the findings of that investigation?

Michael Shanks Portrait Michael Shanks
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The hon. Gentleman has made a number of important points. The terms of reference are available on Ofgem’s website for the inquiry that NESO has commissioned an independent law firm to carry out. It will conduct interviews with staff who were in the control room on that day to get to the bottom of the allegations that have been made, because it is right for us to take them incredibly seriously, and transparency will be an important part of that. I should add, however, that if there are lessons to be learned, it is critical that we implement them very quickly. NESO has already said—and the inquiry will discover further details in this regard—that corporate affairs staff are present in the control room at a number of times, but that they do not interfere in any way with operational decisions. Obviously the inquiry will get to the bottom of the operator’s views on that, but that is the point that it has made in recent days.

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.

Lindsay Hoyle Portrait Mr Speaker
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I call the Chair of the Environmental Audit Committee.

Toby Perkins Portrait Mr Toby Perkins (Chesterfield) (Lab)
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I commend my hon. Friend’s approach. He is right to say that these allegations are incredibly serious, and that it is crucially important not only for there to be a full investigation but for it to be seen to be independent so that people can have confidence in it. He is also right to draw attention to the difference between the concerns that are raised by those whistleblowers and any suggestion that our grid is about to lead to blackouts. Does he agree that while it is absolutely true that one of the terrible legacies that this Government inherited from the last Government was a grid that had been woefully under-invested in for a very long time, and that there is a substantial need for investment in it in order to achieve our energy ambitions, that should not be allowed to be conflated with the suggestion that the lights are about to go out? Can he give confidence to my constituents this summer that NESO has given him all the assurances that he needs that there will be no blackouts?