Ofgem Rejects GBP120 Million Rebate Request from Generators
November 16 2017 - 3:44AM
Dow Jones News
By Ian Walker
U.K. energy regulator Ofgem said Thursday that it has rejected a
requested modification to industry rules which would have resulted
in generators receiving a 120 million-pound ($157.9 million) rebate
funded by consumers.
Generators claim that their network charges in 2015-2016
exceeded the cap of 2.50 euros ($2.95) per megawatt hour on
transmission charges paid by generators that is set under EU
regulations.
On March 8, 2016, SSE PLC (SSE.LN) submitted "CMP 261," a
modification to address the alleged breach by returning GBP120
million to generators.
Ofgem said that it 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 the cap.
If these charges are excluded, the cap on generator-transmission
charges hasn't been breached, Ofgem added
"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," the regulator
said.
Write to Ian Walker at ian.walker@wsj.com; @IanWalk40289749
(END) Dow Jones Newswires
November 16, 2017 03:29 ET (08:29 GMT)
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