National Grid escapes fine over blackouts

National Grid has escaped being fined after an investigation into the London blackouts last summer.

Industry regulator Ofgem concluded it does not have the power to fine the company over the power cuts, which brought misery to hundreds of thousands of commuters.

However it has admitted it plans to change its rules to allow it to automatically fine the firm for future blackouts.

Ofgem's director of corporate affairs John Neilson said it had to judge the power cuts in London on 28 August and in Birmingham a week later, against National Grid's record over the last 10 years since privatisation.

"We believe what happened was a coincidence and not a fundamental problem." he said.

In a statement Ofgem said the blackouts were caused by a series of unrelated events, some of which were the result of errors by National Grid.

However it said: "What went wrong was not material enough to find National Grid in breach of its legal obligations."

Denying the investigation had been a whitewash, Mr Neilson said: "Like all systems of regulation ours is capable of improvement."

National Grid has already provoked a storm by paying its bosses huge bonuses despite the blackouts. Chief executive Roger Urwin's pay was more than ?1 million last year after a ?395,000 bonus, while executive Nick Winser got a ?172,000 bonus taking his pay to more than ?600,000.