Britain’s National Grid Initiates Removal of Chinese-backed Nari Technology Components Amid Cybersecurity Concerns

The National Grid in Britain has commenced the removal of components supplied by a unit of China-backed Nari Technology from its electricity transmission network due to escalating cybersecurity fears, as reported by the Financial Times on Sunday.

The decision to replace the components was made in April following the National Grid’s consultation with the National Cyber Security Center (NCSC), a division of the nation’s signals intelligence agency, Government Communications Headquarters (GCHQ), according to a Whitehall official quoted by the newspaper.

National Grid, when approached for comment, declined to provide details, citing “confidential contractual matters.” In a statement, the organization emphasized its commitment to infrastructure security, stating, “We take the security of our infrastructure very seriously and have effective controls in place to protect our employees and critical assets to ensure we can continue to reliably, safely and securely transmit electricity.”

The Financial Times revealed that an employee at the Nari subsidiary, NR Electric Company-U.K., confirmed the company’s loss of access to sites where the components were installed. However, National Grid allegedly did not disclose the specific reason for terminating the contracts.

According to the report, a source, not identified by name, suggested that the decision was driven by concerns related to NR Electric Company-U.K.’s components responsible for controlling and balancing the grid, thereby minimizing the risk of blackouts.

The status of whether the components supplied by NR Electric Company-U.K. remain in the electricity transmission network remains uncertain, the report added.

As of now, NR Electric Company-U.K., GCHQ, and the Chinese Embassy in London have not responded to Reuters’ requests for comment during non-business hours.

The Department for Energy Security and Net Zero in Britain stated that it refrains from commenting on individual business decisions made by private organizations. In a statement, the department asserted, “As a government department, we work closely with the private sector to safeguard our national security.”