UK Energy Regulator Hits EDF Energy With GBP6 Million Fine

(Alliance News) - UK Ofgem says Wednesday EDF Energy's Thermal Generation unit agrees to pay GBP6 ...

Alliance News 16 December, 2020 | 10:01PM
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(Alliance News) - UK Ofgem says Wednesday EDF Energy's Thermal Generation unit agrees to pay GBP6 million for breaching wholesale energy market regulations.

The watchdog says from September 2017 to March 2020, EDF Energy Thermal Generation regularly sent misleading signals to the National Grid Electricity System Operator about the capabilities of its generation plant.

The energy regulator found that for more than two years, EDF ETG frequently inflated the minimum amount of power - known as the Stable Export Limit - that it said its West Burton B (WBB) generator 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 electricity system operator had to purchase more energy from the plant than needed, when the plant was used to balance the system," Ofgem added.

It continued: "These actions meant that EDF ETG breached its electricity generation licence obligations, by failing to comply with the requirements of the Grid Code.

"The Grid Code specifies the technical requirements generators must adhere to in connecting to and using the national electricity transmission system. These include that technical data - known as 'dynamic parameters' - submitted by generators to the electricity system operator must 'reasonably reflect the expected true operating characteristics' of a generating unit. By submitting inflated limits on the amount of power that WBB could provide, EDF ETG failed to meet this requirement."

Ofgem recognises that EDF ETG did not consider that its approach would result in increased overall balancing costs for the electricity 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 electricity system operator with lower prices. However, now EDF ETG acknowledges that while this approach involved the electricity system operator committing to purchase a larger volume of power from its generator plant, WBB, it sometimes resulted in the electricity system operator spending unnecessary money when trying to balance the system," Ofgem added.

By Paul McGowan; paulmcgowan@alliancenews.com

Copyright 2020 Alliance News Limited. All Rights Reserved.

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