Britain's National Energy System Operator (NESO) has awarded Palantir a £21.2 million contract without competitive tender, continuing a relationship with the US data analytics firm that began three years ago under National Grid's private ownership. NESO says the deal is a stopgap to keep two "critical business processes" running while it prepares a proper competitive procurement for a replacement platform, arguing that switching suppliers now would risk disrupting customer-facing services and regulatory duties. The arrangement echoes concerns raised over Palantir's earlier NHS contracts, where incumbency from earlier uncompeted deals was seen by critics as giving the firm an advantage in subsequent tenders.

The contract, worth £17.7 million before VAT, covers licensing and support for NESO's "Connections" and "Skip Rates" processes running on Palantir's Foundry platform, and runs from 8 September 2026 to 31 July 2027, with possible six-month extensions to July 2028. NESO says it was not obliged to disclose the original March 2023 contract because it was then part of privately owned National Grid. Separately, NESO has begun market engagement for a new "Strategic Enterprise Modelling Capability," a broader, AI-enabled platform expected to run from July 2027 to 2032, suggesting the current Palantir deal is intended as a bridge rather than a long-term fix.