The owner of a generation plant has agreed to pay £6m for breaching wholesale energy market regulations.
Ofgem said EDF Energy Thermal Generation (EDF ETG) inadvertently breached its licence obligations by submitting technical data to the system operator which did not correctly reflect the true capabilities of its generation plant or the amount of energy it could supply.
The regulator found that for more than two years, it frequently inflated the minimum amount of power – known as the Stable Export Limit (SEL) - that it said its West Burton B (WBB) plant could supply.
“EDF ETG did this at times when the plant was not planning to generate energy. In many cases, this meant that the ESO had to purchase more energy from the plant than needed, when the plant was used to balance the system,” it said.
Ofgem said it recognised that the generator did not consider that its approach would result in increased overall balancing costs for the system operator.
“EDF ETG instead considered that, by attempting to recover its fixed costs over greater volume, its approach could allow it to provide the ESO with lower prices.”
Ofgem said EDF ETG has taken swift action to prevent any reoccurrence and has also agreed to pay £6m into a voluntary redress fund.
“Ofgem has concluded that there is no merit in opening a formal investigation. This is owing to the company’s admissions, the steps it has taken to prevent any future reoccurrence, and the redress that it has agreed to pay,” it added.