Scottish energy company SSE will pay a hefty fine for overcharging the UK grid operator, the country’s energy regulator OFGEM has announced. Photo courtesy of SSE Renewables
June 6 (UPI) — Scottish energy company SSE has secured $12.1 million in “excessive payments” from a UK grid operator. USD fine, reported the country’s energy regulatory body.
The UK’s Office of Gas and Electricity Markets, or OFGEM, found that SSE overcharged during a period of “transmission constraints”, when grid congestion limits the ability to connect more to the grid.
This could lead to a situation where generation exceeds demand, which OFGEM said could encourage power producers to “exploit their position” by charging “excessive prices” to reduce their generation. Foyer Power Station in the North of Scotland.
“Consumer protection is Ofgem’s priority and we will continue to monitor the UK’s wholesale energy markets and ensure their integrity on behalf of energy consumers,” said Cathryn Scott, OFGEM’s director of enforcement and emerging issues. said on Tuesday.
SSE had no public statement on the sentence. However, The Guardian newspaper reported that the company is updating its policies and procedures to address the regulatory concerns.
OFGEM added that the price action was not intentional. The regulator said SSE was cooperating and had shown its willingness to resolve the issue. SSE was therefore entitled to a reduced payment of €12.4 million.
“This enforcement action sends another strong signal to all generators that they need to put controls in place to ensure that their bid prices are set so that they do not take undue advantage during transmission curtailment periods,” OFGEM added.
“If they don’t, they will face serious consequences.
Foyers Power Station operates as so-called pumped storage, using dam water to drive the turbines. The Scottish government has focused on new renewable energy sources for years, and German energy company RWE began developing a prototype wave-powered turbine in the early 2010s.
