The Newcastle-based firm, owned by US conglomerate Berkshire Hathaway, missed key Ofgem power cut targets for 2025 as storms battered the North East

Energy network operator Northern Powergrid says it is ploughing billions of pounds into its infrastructure across the North East, despite falling short of key power outage targets owing to adverse weather conditions.

The Newcastle-based firm manages the power lines and network serving approximately 1.6million customers across an area stretching from the far reaches of Northumberland down to York, and westward to the Pennines.

Newly published accounts reveal that Northern Powergrid (Northeast) plc committed £271.4m in investment during 2025, as part of a wider £2.8bn spending programme running through to 2028. That expenditure encompassed transformer refurbishments, overhead line rebuilds, cable replacements and damaged pole renewals, amongst other works carried out across its 42,000km of overhead and underground cables and more than 28,000 substations.

The firm also pressed ahead with the installation of an automatic power restoration system across its high voltage network, while at low voltage level, “next generation” equipment fitted with fault-detection sensors was introduced.

These upgrades come despite Northern Powergrid falling short of key power outage targets set by industry regulator Ofgem. On the measure of customer minutes lost — the average number of supply minutes lost per connected customer due to outages lasting longer than three minutes — the company recorded 46.8 minutes, exceeding the target of 41.1 minutes, though this represents an improvement on the 2023/24 figure of 49.5 minutes.

On customer interruptions — the average number of supply disruptions per every 100 connected customers due to power cuts lasting more than three minutes — Northern Powergrid recorded 51 minutes, exceeding the 46.7-minute target and rising from the 2023/24 figure of 48.6 minutes. Senior figures attributed the results to adverse weather conditions throughout the year and a rise in planned maintenance works to upgrade equipment, reports Chronicle Live.

The overall duration of power cuts fell by 4.8% when compared to 2024. Those figures emerged as the North East was struck early in 2025 by the destructive Storm Éowyn, before Storm Bram unleashed wind and rain towards the end of the year.

The accounts also reveal that operating profits at the company dropped from £264.1m to £183.3m during the year, as revenue declined from £536.4m to £457.9m. A £160m dividend was paid out, with Northern Powergrid’s parent company being US conglomerate Berkshire Hathaway.

Alex Jones, finance director at Northern Powergrid, said: “Northern Powergrid is investing £2.8bn in the current five-year regulatory period through to 2028, following the successful delivery of a £3bn eight-year investment plan between 2015 and 2023, upgrading the power network to homes and businesses across the North East, Yorkshire and North Lincolnshire.

“To support this investment, since 2005 Northern Powergrid has reinvested over 70% of its profits, after tax, back into the business.

“We are committed to providing the best possible service to our customers and our investment programmes ensure we are continuing to improve network resilience and reliability for our customers, and helping to create a greener energy system for the communities we serve.”

It will be Britain’s focal point for the development and testing of the latest drone technology

A huge centre that will be used for testing drones for warfare has opened in Swindon. The facility is based at the vast 370-acre Panattoni Park site, which previously housed Honda’s car plant until it closed for good in 2021.

At 545,000 sq ft, the Uncrewed Systems Centre is the size of more than 10 football pitches and the largest of its kind in Europe, according to the Ministry of Defence (MoD).

Defence Secretary Dan Jarvis MP said the site would help the UK “embrace technologies” that are redefining warfare.

“The character of warfare is changing, and it is changing fast,” he said. “From Ukraine to the Middle East, we are seeing right now how uncrewed systems are rapidly evolving and reshaping conflicts – on land, in the air and at sea.”

The centre will allow the military to develop and use new tech in “a matter of weeks” rather than years, according to Mr Jarvis, who added: “In this new era, those who innovate fastest will win.”

The MoD has spent more than £450m on uncrewed systems, including £300m on research and development, since July 2024.

In the last year, UK Defence Innovation has injected over £142m in rapid investment to scale up production of drones and anti-drone weapons.

Matt Griffith, director of Policy at South West chamber of commerce Business West, said the centre would deliver a “significant boost” for Swindon, cementing its position as “a hub for defence manufacturing and innovation”.

“It activates a prime employment site, generating and retaining high-quality jobs in Swindon and across the wider supply chain,” he said.

“It also represents a clear win for the town and its collaboration with businesses in supporting and championing inward investment and the opportunities that defence and drone companies can bring.”

Brigadier Stu Nasse, head of the UK Drone Coalition, added: “This location was chosen for all the right reasons: access to a technically proficient workforce, strong physical and digital infrastructure, and proximity to all facets of defence.”

The new MoD facility is the latest in a string of drone-related sites to open in Swindon.

Last Month, a military drone company backed by Donald Trump’s son opened a factory in the town after securing a near-£2m deal to support UK defence activities.

It came after Tekever – one of Europe’s top drone manufacturing enterprises – and German defence firm Stark set up sites in Swindon last year.

The rally follows the filing of the National Stock Exchange’s (NSE) Draft Red Herring Prospectus (DRHP) with Sebi for what could become India’s largest-ever initial public offering. Documents filed by the exchange show that Maithan Alloys, one of India’s leading ferroalloy manufacturers and exporters, owns a 0.17% stake in NSE, equivalent to 41,25,500 shares.

Based on NSE’s last traded price of Rs 2,055 in the unlisted market prior to the DRHP filing, the value of Maithan Alloys’ holding stands at roughly Rs 850 crore.

The proposed issue, estimated at around Rs 30,000 crore, is entirely an offer-for-sale (OFS) of up to 148.9 million shares, representing nearly 6% of NSE’s paid-up equity capital.

If completed at the expected size, it would surpass Hyundai Motor India‘s Rs 27,000 crore IPO in 2024 to become the largest public issue in the country. While Reliance Industries‘ Jio is also expected to pursue a larger listing, it is yet to file its draft papers.

Live Events

PSUs make big money

State Bank of India (SBI) stands to be among the biggest beneficiaries of the IPO. The country’s largest lender is poised to monetise a long-held investment in NSE, translating into an estimated gain of 256,775% based on its acquisition cost.
Several other public sector and institutional investors are also in line for substantial returns from the offer-for-sale.
The New India Assurance Company Ltd. and National Insurance Company Limited have the lowest acquisition cost among the selling shareholders at just 32 paise per share, putting them on track for returns of as much as 6,422 times their investment. Stock Holding Corporation of India is offering around 11 million shares that were acquired at 46 paise apiece, implying a potential return of about 4,467 times.

Among foreign investors, Singapore sovereign wealth fund Temasek Holdings Pte is selling approximately 11.25 million shares through Aranda Investments and is set for a return of around 33 times. Global investment bank Morgan Stanley is expected to earn roughly 31 times its original investment.

Life Insurance Corporation of India (LIC), NSE’s largest shareholder with a stake of nearly 11%, is not participating in the offer-for-sale. LIC was among the earliest investors in the exchange when it subscribed to NSE shares in 1992 and will continue to hold its stake.

The DRHP states that up to 50% of the issue will be reserved for qualified institutional buyers (QIBs), while at least 15% will be allocated to non-institutional investors and 35% to retail investors.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)