Energy regulator Ofgem is consulting over a request from National Grid to charge generators and suppliers an extra £113 million.

Following a competitive tender, National Grid has agreed two contracts for grid services with Drax and SSE’s Fiddler’s Ferry coal-fired power stations.

The two stations have agreed to start-up and supply electricity if National Grid needs to reenergise the transmission system – known as a “black start”.

National Grid now wants to recover the £113m total additional cost of the two contracts from generators and suppliers through the “Income Adjusting Events” process.

Significant over-spend

Ofgem said: “Traditionally coal plant has provided Britain with this capability, but the economics of running these plant have changed. This means they are available less frequently than before.

“Ofgem set National Grid a cost target for these services. National Grid has spent significantly more money than the agreed target.

“When making a decision on this Ofgem has powers to disallow some or all of the expenditure on these contracts if it judges that the case for recovering the money has not been met.”

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