OFGEM Ofgem opens investigations into five generators (8441N)
May 21 2015 - 2:00AM
UK Regulatory
TIDMALK
RNS Number : 8441N
OFGEM
21 May 2015
21 May 2015
OFGEM OPENS INVESTIGATIONS INTO FIVE GENERATORS' COMPLIANCE WITH
CAPACITY MARKET RULES
Ofgem has opened investigations to see if five generators
provided false or misleading information to National Grid about
planning consents for some of their proposed generating units that
took part in the December 2014 capacity auction. The companies
being investigated are GF Power Peaking Ltd, Berangere Ltd, Adret
Ltd, Alkane Energy UK and Power Balancing Service Ltd.
The Capacity Market is part of the Government's reforms intended
to ensure sufficient capacity on the system to provide a reliable
electricity supply. National Grid will run an annual auction to
decide which generators and providers of demand side response will
be awarded a capacity agreement, in return for providing capacity
at times of system stress.
The opening of these investigations does not imply that we have
made any findings about non-compliance.
<Ends>
Notes to editors
1. Capacity market
All five companies were successful in National Grid's first
capacity auction.
GF Power Peaking Ltd: Secured capacity agreements for all nine
of its new build generators and an existing generator in the
capacity auction. Two new builds secured 15 year capacity
agreements with the rest securing 1 year agreements for 58 MW of
generating capacity.
Berangere Ltd (formerly registered as GFE 2015 Ltd): Secured
capacity agreements for all three of its new build generators in
the capacity auction, securing 15 year contracts for 60 MW of
generating capacity.
Adret Ltd (formerly registered as GFE 2017 Ltd): Secured
capacity agreements for two out of three of its new build
generators in the capacity auction, securing 15 year contracts for
37 MW of generating capacity.
Alkane Energy: Secured capacity agreements for nine of its ten
new build generators in the Capacity Auction, securing 15 year
contracts for 40 MW of generating capacity.
Power Balancing Services Ltd: Secured capacity agreements for
four of its six generating units, securing 14 year contracts for 28
MW of generating capacity.
2. Capacity market and Ofgem's role
The Capacity Market provides incentives for investment in the
overall level of reliable capacity needed (both supply and demand
side response) to ensure secure electricity supplies. Potential
capacity providers can qualify to participate in a capacity auction
where, if successful, they will be awarded a Capacity Agreement.
This agreement would give them the right to receive a regular
payment in return for which they will guarantee to provide a level
of additional supply at times of system stress; otherwise they will
face a penalty.
National Grid is the Delivery Body for Electricity Market
Reforms and administers and runs the auction process on behalf of
DECC. Ofgem is responsible for enforcing compliance with the
rules.
More information on the government's electricity market reforms
can be found here.
https://www.gov.uk/government/policies/maintaining-uk-energy-security--2/supporting-pages/electricity-market-reform
For further press information contact:
Kate Wilcox: 020 7901 7113
Lisa O'Brien: 020 7901 7426
Dafydd Wyn: 020 3263 9943
Out of hours media contact number: 07766 511470
This information is provided by RNS
The company news service from the London Stock Exchange
END
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