Energy giant SSE to pay £9.8m penalty for pricing breach

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Energy giant SSE to pay £9.8m penalty for pricing breach
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The Perth-based company is found to have overcharged the National Grid for lowering output.

Energy giant SSE is to pay £9.8m for breaching its generation licence, the industry regulator has announced.

During transmission constraints, the electricity system operator takes action to manage flows across the network to increase and decrease the amount of electricity produced by different generators. It found that SSE made the bid prices it charged the electricity system operator to lower output "significantly more expensive", including in periods of transmission constraint.Ofgem said that, while there was no evidence to suggest the move was deliberate, it found that SSE breached the rules that were in place.SSE has since pledged to put in place a new pricing system designed to properly reflect the costs and benefits of reducing its generation at Foyers.

The funds can pay for anything from making a home more energy efficient, to providing advice that helps struggling consumers keep on top of their bills.

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