Proactive Investors - Wind farm operators are facing a probe by the UK’s energy regulator, following claims that they were overcharging when asked to switch off turbines to cut excess power to the grid.
According to the Renewable Energy Foundation (REF), which raised the concerns, such practice added £100 million to overall consumer bills last June alone.
“Our evidence suggests that multiple wind farm operators have been charging over the odds to reduce their output on windy days, generating no energy but costing consumers a fortune,” director John Constable commented.
National Grid PLC (LON:NG)’s system operating wing (ESO) pays energy generators to increase or decrease supply in real time to balance it with demand.
These costs are then ultimately footed by the consumer through bills, with the likes of Drax Group (LON:DRX) and SSE PLC (LON:SSE) among firms to have been fined last year for abusing the system.
Ofgem has confirmed that REF’s claims, which alleged overcharging was commonplace among wind farm operators who effectively "set their own price", were being investigated.
"We already have a robust set of rules in place which explicitly exist to prevent generators from abusing the energy market in such circumstances," an Ofgem spokesperson said.
"We’ll consider all the facts and if evidence of a breach of market rules is found we will not hesitate to act.
"We are also currently consulting on whether any changes are required to the licensing rules in this area."