An independent Deloitte investigation has been launched into the National Energy System Operator (NESO) amid allegations that the organisation misled Parliament and markets and wasted millions of pounds during the drive towards Net Zero.
The review focuses on the state-owned body’s procurement policies and procedures, but comes as whistleblowers and independent experts raise concerns about the reliability of the electricity grid and the rapid expansion of wind and solar power.
NESO, which is responsible for ensuring that sufficient electricity is available, confirmed that Deloitte had been engaged by its management. The operator said the consultancy would identify opportunities to strengthen its procurement arrangements.
The role of chief executive Fintan Slye, whose salary is understood to be £1 million a year, is also under scrutiny. One senior insider claimed that Mr Slye was “hanging on by a thread”.
Insiders say engineers have struggled to forecast supply and demand accurately as the system moves away from traditional power stations towards thousands of wind farms, solar installations and battery storage units.
A 42-page dossier alleging a series of failings has reportedly been handed to NESO executives by a former employee. The claims follow a separate investigation by solicitors Eversheds Sutherland into an incident in June when the grid required emergency electricity imports during a heatwave.
An Eversheds report identified “high levels of operational stress” at NESO’s headquarters in Wokingham, Berkshire, and a “significant disconnect” between senior executives and the control-room engineers responsible for keeping the system running.
One whistleblower has described the organisation as descending into “civil war”, alleging that control-room staff fear safety is at risk. Unions have written to Mr Slye and the board about management conduct and concerns that employees could face repercussions for speaking out.
Board members are understood to have arranged a two-day visit to the grid control room this month without executives present. Engineers have also claimed that Mr Slye was recently seen in the control room asking staff “how it all works”.
A meeting is due to discuss the chief executive’s pay and £400,000 bonus. Mr Slye told MPs last month that the electricity system was secure and that he was “the right man” for the job.
Concerns over the cost of renewable power
The investigation comes as consumers face rising costs associated with so-called wasted wind. In September, households paid a record £505 million surcharge to switch off wind farms when the ageing infrastructure could not take the electricity they were producing, before replacement power was bought from gas-fired stations.
NESO has acknowledged that the cost of disconnecting wind turbines could reach £9 billion by 2029, potentially adding up to £100 to household energy bills.
An NESO insider alleged that the rapid shift to unpredictable renewable generation had also resulted in the grid breaching operational limits regularly, with too much or too little power in the system.
NESO rejected that claim, saying the system had remained within safe limits at all times. It added: “There have been no breaches of statutory frequency limits which are regulated by – and would be reported to – Ofgem.”
The organisation said: “Deloitte was engaged by NESO management to review and recommend opportunities to strengthen our procurement policies and procedures.”
