Monday 26 February 2018

UK watchdog rejects SSE, EDF’s appeal on transmission charges

The competition watchdog has dismissed EDF and SSE’s appeal against Ofgem’s decision on transmission charges.

In 2016, SSE had requested a change to industry rules about charges paid by electricity generators for using the transmission system, which would have resulted in them receiving a £120 million rebate from National Grid.

It argued generators in Britain had paid more in transmission charges in 2015/16 than the maximum set under EU law.

SSE and EDF appealed to the Competition and Markets Authority (CMA) after Ofgem rejected the request.

The CMA concluded that - applying the correct approach to EU law - there was such an exclusion and therefore there had not been a breach of the cap and Ofgem was entitled to reject the modification request.

Andrew Wright, Senior Partner at Ofgem, said: "It is good news for consumers that the CMA has upheld Ofgem's decision. If the modification had gone ahead, it is likely that the rebate would have cost consumers up to £120 million and led to further payments to larger generators in the longer term."