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Contractor to repay emergency repair costs and receive £40,000 fine following Bayside power outage - 652/2026

September 03, 2026

The Minister for Health, Care and Business, the Hon Gemma Arias-Vasquez, who also has responsibility for the Gibraltar Electricity Authority, met earlier this week with Macmillan Ltd, the contractor responsible for damaging a high voltage cable in the Bayside area on 19th August 2026.

The damage caused a loss of supply to Devil's Tower Road, parts of Laguna Estate, Marina Club, Four Corners Estate, Air Terminal and Underpass, Churchill Centre, Notre Dame School, South Dispersal and surrounding areas. Supply was fully restored by 10:08am the same morning.

At the meeting the Minister conveyed the Government's disappointment on behalf of all those affected by the outage and sought a full account of how the works were planned and carried out.

It was agreed that Macmillan Ltd will repay the cost of Elysium's emergency attendance and temporary repair works, which amounted to £10,904.35. That cost will therefore be met by the contractor and not by the public purse.

The Gibraltar Electricity Authority will in addition issue a financial penalty of £40,000 under the Electricity Infrastructure (Damage) Act 2025.

The Act came into operation on 7 November 2025 and created a specific offence of causing damage to electrical infrastructure where that damage results in a power outage to all or any part of Gibraltar. The offence is one of strict liability, meaning it is not necessary to prove that the damage was intended. Where the offence is committed by a person acting in the course of employment, the employer is liable in the same manner and to the same extent. The Authority may impose a financial penalty of up to £100,000, subject to the notice, representations and appeal procedure set out in the Act.

The Government again thanks the engineers and staff of the Gibraltar Electricity Authority for their work in restoring supply.

The Minister for Health, Care and Business, the Hon Gemma Arias-Vasquez MP, said: "I met the contractor to make the Government's position clear. Damage of this kind is avoidable, and those responsible should carry the cost rather than the public. The emergency attendance and temporary repair costs will be repaid in full, and a financial penalty of £40,000 will be issued under the Act. I said when this legislation was passed that these powers exist to be used where the evidence supports it, and that is what is happening here. Contractors who dig in Gibraltar are given detailed cable drawings and on site instructions by the Authority, and they are expected to use them and to follow them."