Energy supplier SSE PLC (LON:SSE) said it has agreed to pay more than £705,000 in redress to a government fund that is designed to promote the uptake of renewable and low-carbon electricity generation technologies.
SSE will pay the money to the Feed-in-Tariffs (FIT) levelisation fund after overstating the costs incurred in making payments to eligible low carbon generators.
READ: SSE warns on profits after surprise EU court ruling on UK capacity market
The company received £4.07mln more in payments from the annual levelisation fund than it was entitled to but reported the error to regulator Ofcom and has repaid the government.
SSE will pay a further £455,705 in interest to the FIT fund and £250,000 to Ofgem’s voluntary redress scheme that supports vulnerable customers.
An independent audit that was carried out to find out the cause of the error has recommended action to improve SSE’s FIT reporting processes and reduce the risk of future non-compliance.
Earlier this month, SSE warned that a surprise European Union court ruling that deemed the UK capacity market to be illegal would dent this year’s profits by up to a further 15%.
In December, SSE abandoned a proposed merger of its energy services business with Npower, saying it is no longer in the best interests of its customers, employees or shareholders.
The FTSE 100 firm is still looking to offload its energy services business as it believes it would be “best positioned” outside of the company.