SSE fined £2.6m by Ofgem for hiding ‘inside information’
◆ Energy supplier SSE has been fined more than £2m by the industry watchdog for failing to announce inside information that could have influenced the price of wholesale electricity. Companies are required to publish such information in an “effective and timely” manner, said energy regulator Ofgem, writes Ed
The fine can be traced back to a deal SSE struck in March 2016 with National Grid to provide electricity from the company’s Fiddler’s Ferry power station. SSE had previously said that it intended to shut the power station in April 2016. The site supplies as much as 3pc of the UK’s energy demand at peak times. The deal made it more likely that the power station would remain open.
This announcement was “likely to have a significant effect on wholesale prices, and was therefore inside information”, Ofgem said.
But SSE did not disclose the deal, or the fact that Fiddler’s Ferry power station was likely to remain open, for another eight days.
It is likely this led to some market participants paying more for wholesale electricity than they should have, Ofgem said.
By settling the investigation early, SSE qualified for a 30pc discount on the total fine of £2.6m. It is the first fine of its kind meted out by the watchdog.