The UK approach to managing ‘crises’ needs to improve following the electricity sub-station fire near Heathrow last Thursday, according to a leading governance expert.

Peter Swabey, policy and research director at the Chartered Governance Institute, made the comments following the launch of investigations into the fire, which caused the disruption of almost 1,400 flights and the loss of power to around 63,000 homes.

The issue raises questions about corporate governance and risk management at Heathrow, in addition to investigating the technical issues that went wrong.

Swabey says: “That a fire at a single substation can close a major airport for a day is a matter of concern. The investigations which have been announced will need to work hard to provide answers and restore public confidence in the UK’s infrastructure and crisis response.

“Additionally, the way many passengers were treated on Friday leaves much to be desired; too many were simply stranded, with no support.

“The UK needs to get better at handling crises.”

What went wrong?

The National Energy System Operator has launched an investigation into what happened at Heathrow, while the airport has also announced its own review.

Questions tabled for examination include the adequacy of Heathrow’s business continuity plan, why it took so long to switch the airport’s power supply to an alternative and whether closure of the airport was necessary.

There will also be a question of whether the risk of substation fire was declared to regulators.

An article by the Chartered Governance Institute says: “Risk management is a proactive process focused on preventing or reducing the likelihood of harm from internal and external risks.

“All directors should receive formal training in risk to ensure that their organisations are preventing as many crises as possible and are preparing for those risks which cannot be avoided.”

Balance of power

Controversy surrounding the fire was heightened when National Grid chief executive John Pettigrew told the Financial Times that power was available to Heathrow through two other substations.

“There was no lack of capacity from substations. Each substation individually can provide enough power to Heathrow.”

Heathrow’s chief executive Thomas Woldbye has said internal reconfiguration of electrical networks would have been needed to do so.

There has been much discussion of boardroom readiness for crisis following the increase in natural disasters due to climate change, the pandemic and Russia’s invasion of Ukraine. There are those that believe crises “are no longer rare disruptions”.

A survey by FTI Consulting found that 60% of general counsels are more involved in crisis management strategy.

FTI’s Kate Brader wrote recently for Board Agenda: “Crisis preparedness is no longer a check-the-box exercise. It is an essential component of modern governance.”