SSE PLC (LSE:SSE) has been told a fine for overcharging the UK’s electricity system operator will have to be paid by September, as regulator Ofgem confirmed the penalty on Tuesday.
Ofgem formally ordered SSE to pay the £9.8mln fine on Tuesday, after announcing the FTSE 100-listed generator would be punished in June.
SSE had overcharged National Grid PLC (LSE:NG.)'s system operating wing when asked to turn down generation at the Foyers pumped storage power station in Scotland from May 2020, Ofgem found.
This was as the system operator worked to ensure energy supply met demand in real-time - a process carried out on the balancing market which sees generators paid to alter output.
However, SSE’s ramped-up “bids submitted resulted in higher balancing charges, ultimately increasing costs for consumers,” Ofgem ruled previously.
“Protecting consumers is a priority for Ofgem and we will continue to monitor the wholesale energy markets in Great Britain and ensure their integrity,” the regulator added on Tuesday
“This enforcement action sends another strong signal to all generators that they must put in place controls to ensure that their bid prices are set in a way that ensures that they do not obtain excessive benefits during transmission constraint periods.
“If they fail to do so, they will face significant consequences.”
SSE shares slipped 0.7% to 1,796.5p.