Northern Powergrid, the Newcastle-based energy network operator owned by US conglomerate Berkshire Hathaway, is investing billions of pounds into its North East infrastructure despite falling short of key power outage targets set by Ofgem. The company, which manages power lines for around 1.6 million customers across an area from Northumberland to York and the Pennines, missed its 2025 targets due to adverse weather conditions.
Investment and Spending
Newly published accounts show that Northern Powergrid (Northeast) plc committed £271.4 million in investment during 2025 as part of a wider £2.8 billion spending programme running through to 2028. This expenditure covered transformer refurbishments, overhead line rebuilds, cable replacements, and damaged pole renewals across its 42,000 km of cables and more than 28,000 substations. The firm also installed an automatic power restoration system on its high voltage network and introduced next-generation equipment with fault-detection sensors at low voltage levels.
Performance Against Targets
Despite these upgrades, Northern Powergrid missed Ofgem's targets. On customer minutes lost, it recorded 46.8 minutes against a target of 41.1 minutes, though this improved from 49.5 minutes in 2023/24. On customer interruptions, it recorded 51 minutes against a target of 46.7 minutes, up from 48.6 minutes in the previous period. Senior figures attributed the results to adverse weather, including Storm Éowyn and Storm Bram, and a rise in planned maintenance. Overall power cut duration fell by 4.8% compared to 2024.
Financial Results
Operating profits dropped from £264.1 million to £183.3 million, with revenue declining from £536.4 million to £457.9 million. A £160 million dividend was paid to parent company Berkshire Hathaway. Alex Jones, finance director, 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. To support this investment, since 2005 Northern Powergrid has reinvested over 70% of its profits, after tax, back into the business."
