SSE fined £2.6m by Ofgem for hid­ing ‘in­side in­for­ma­tion’

The Daily Telegraph - Business - - Business -

◆ 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

Clowes.

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.

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