My Lords, we are very grateful to NESO for the final report on this catastrophic power failure that shut down Heathrow, and we note the deeply concerning findings. A single point of failure detected years ago should not have been able to shut down our largest airport. This was a major incident. Heathrow closed for 16 hours; 1,300 flights were cancelled, impacting 270,000 passengers; and 70,000 domestic users had their energy cut. This presents a valuable learning opportunity, so I thank the Government for the terms of reference and NESO for its excellent and comprehensive report. The quality of the work here shows just how well NESO is establishing itself as a new organisation and how it is adding value.
To summarise, the report found critical maintenance not done for seven years; older transformers in situ not compliant with modern regulations, allowing the fire to spread; any number of possible further unknown maintenance issues; and possible National Grid licence breaches. Heathrow has three independent feeds from the grid but has configured its internal network in such a way that losing just one feed closed the airport. National Grid, in turn, was not aware of Heathrow’s vulnerability and that it was critical national infrastructure. Broken systems and poor communications between organisations come on top of years of underinvestment, both in our grid infrastructure and in our critical national resilience more generally.
These findings are particularly concerning as they come just before the massive period of transition, as we are about to invest over £70 billion before 2030 in achieving clean power. We also face increasing impacts from climate change itself and increasing external threats, from cyberattacks to attacks on our undersea cables, further impacting our national resilience. The report reveals a catalogue of serious failings, the most damaging of which was a catastrophic failure to recognise the imminent fault in the transformer in 2018, the failure to take appropriate action, and further mis-maintenance in 2022. This led directly to the fire. The substation, built in 1968, would have worked well had it been maintained, but it was not positioned in a way that met with modern design standards, which meant that once the fire started, it spread.
The Minister in the other place said that National Grid would look at maintenance backlogs and that he hoped to get an update by the end of last week, so I ask the Minister: are the Government clearer on the scale of any further maintenance backlogs that exist? Heathrow understood its power supply vulnerability yet deemed it low-risk and decided not to do anything about it. What is the Government’s position on this continuing vulnerability at Heathrow Airport? The Minister talked about an opportunity for Heathrow to fix its systems, but surely the Government need to go further before we expand Heathrow, and make sure that Heathrow’s power systems are fit for purpose.
Alarmingly, the energy system operators, including National Grid, were not aware that Heathrow was critical national infrastructure and did not understand the impacts of the interruption to one of its power supply points. This lack of joined-up thinking and awareness across critical sectors is a grave concern, so I hope that the Government will ensure that energy network operators are fully aware of all the critical national infrastructure customers that they have and the impacts of potential supply operations. Will a mandatory cross-sector communication and operation protocol be established to help resolve these problems? The critical national infrastructure people and the power supply people need to be talking to each other. That this really has to be resolved is one of the key things to come out of this.
Further, what concrete steps will the Government take to mandate a comprehensive review of all the substations to make sure that they fit modern design standards and are sited appropriately? I know the Minister is in conversations with National Grid and with Ofgem. I welcome the commitments in the Statement before us today, but when do the Government expect the Ofgem report to be published, and how will the Minister and the Government further update this House once that has been completed? If further National Grid failures come to light, how will those be resolved, and how will National Grid be held to account if further backlogs of maintenance come to light?
I welcome the inclusion of transformers. I note that there is a 12- to 24-month wait for these things. They are crucial to our transition to net zero, so I welcome that that was done. I call on the Government to do more to update Parliament on the transition to net zero and to produce an annual report on our energy resilience and our transition to net zero.
Finally, this is a valuable learning opportunity, but for the Government to learn, this report needs to not sit on a shelf. We have had other reports about energy resilience, and we have had Mighty Oak, so can the Minister reassure me about the actions the Government will take to ensure that lessons are learned and actions are taken, across the sectors, to improve communication and improve our resilience? We all know that if this stuff goes wrong, the lights go out for everybody and that causes problems, so we do need to act on these things, but I thank the Minister for repeating the Statement.