National Grid to pay £1.5m into voluntary redress refund

An accurate 7-day electricity demand forecast was not provided during a number of months in 2017.

By Matt Maynard · 8th April 2021

Ofgem introduced a financial incentive to help the National Grid Electricity System Operator (National Grid ESO) produce more accurate forecasts in 2017. Between April and October 2017, these forecasts were either over or under demand. 

National Grid ESO received £130,000 from the incentive during the inaccurate electricity demand forecasts, but investigation found the ESO did not have to sufficient compliance in place to provide forecasts with the accuracy Ofgem wanted. 

Energy suppliers across the UK often rely on these forecasts so they know how much electricity to both generate and purchase. This can cause suppliers to either buy too much and sell back at a loss, or buy too little and have to cover the shortfall - in both instances higher prices can be passed on to consumers. 

National Grid ESO has agreed to pay £1.5 million into Ofgem's voluntary redress fund to support vulnerable energy consumers and further innovation.

Ofgem’s Director of Enforcement Cathryn Scott said:

“In 2017, National Grid ESO did not meet its obligation to provide accurate and unbiased 7-day ahead electricity demand forecasts which ultimately may have risked pushing up the cost of electricity for consumers."

“National Grid ESO plays a vital role in coordinating and managing the supply and demand of Britain’s electricity. Many suppliers rely on accurate electricity demand forecasts to buy electricity for their customers."

“Ofgem’s rules on publishing accurate information are clear and must be followed. The £1.5 million payment sends a strong message to the system operator that it must follow the rules.”

Source: Ofgem 

Compare our best energy deals and switch in minutes

Get started >

A service you can trust

Trustpilot excellent rating

How switching works

  1. Enter your details

    Answer a few quick questions and then we can find you some great energy deals based on your location and usage.

  2. Compare our best deals

    Once we’ve got your prices we’ll help you compare the best ones, and we can answer any questions you have too.

  3. We’ll handle the switch

    With us there’s no obligation, but if you want to take one of the energy deals then we’ll handle it all for you free of charge.


49 % of consumers say they have never switched, or have only switched once. Make sure you're not missing out on a better deal.

Don't overpay - switch today

Get Started