UK energy regulator says SSE Generation to pay $12.2 million for licence breach

Britain’s energy regulator Ofgem said on Tuesday SSE (LON:SSE) Generation will pay 9.8 million pounds ($12.2 million) for securing excessive payments from the National Grid (LON:NG) Electricity System Operator (ESO) for reducing output at Foyers power station.

The decision followed months of investigation, after SSE changed its bid pricing for balancing services at the Foyers pumped storage power station in northern Scotland, Ofgem said.

The power plant participates in the UK balancing market, run by National Grid ESO, to help increase and decrease electricity production to ensure a stable power grid operation.

Ofgem had started the investigation in October, 2021.

The watchdog said it had not seen any evidence which suggested that the breach was deliberate but found that SSE changed its pricing strategy for the Foyers plant, knowing that the revision would breach the licensing conditions.

SSE co-operated with the investigation and expressed its willingness to settle the case, and has also committed to a new pricing methodology to properly reflect its costs and benefits of reducing generation at Foyers, Ofgem said.

Any objections to the regulator’s proposal must be filed by June 27, Ofgem said.

SSE did not immediately respond to a Reuters request for comment.

($1 = 0.8034 pounds)