Posted on: 21/11/2017
The energy regulator has turned down a bid by power generators to claim a £120 million rebate from consumers.
Generators had claimed that their network charges during the 2015-16 financial year had breached a €2.50/MWh cap set under European Union (EU) regulations.
SSE filed a notice called “CMP 261” on 8 March, which sought to change the rules and allow generators to recover £120m via network charges.
But Ofgem has now rejected the plea.
Offshore wind farm costs
The regulator said: “Ofgem has rejected this modification on the grounds that most, if not all, so-called local network charges, which mainly relate to transmission links connecting offshore wind farms to the grid, should be excluded from this cap.
“On the basis that these charges are excluded, the cap on generator transmission charges has not been breached.
“We believe this decision to be the better interpretation of the EU regulation consistent with Ofgem’s statutory objectives and duties and in the long-term interests of consumers.”