4C is now TGS

We are excited to announce a significant milestone in 4C Offshore's journey. Our integration into the TGS family marks the beginning of a new era in offshore wind market intelligence.

Learn what this means for you!

SSE and EDF transmission charge appeal rejected

By: Tom Russell 26/02/2018 Ofgem

General Grid Windfarms

The UK's Competition and Markets Authority (CMA) has upheld Ofgem's decision to reject a requested modification to industry rules relating to the transmission of electricity from offshore wind farms to the national grid.

SSE and EDF claimed that their network charges in 2015/16 exceeded the €2.50/MWh cap on transmission charges paid by generators, which is set under an EU regulation.

On 8th March 2016, SSE submitted “CMP 261”, a modification to address this alleged breach by returning £120m to generators. The rebate would ultimately need to be recovered from consumers via network charges.

Ofgem rejected the request for modification on 16th November 2017 on the grounds that most, if not all, so-called local network charges, which mainly relate to transmission links connecting offshore wind farms to the grid, should be excluded from this cap.

Subsequently, SSE and EDF appealed Ofgem's decision to the CMA on 7th December 2017 leading to today's decision.

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.

"It is disappointing that SSE and EDF challenged our decision. The energy market is under close scrutiny and companies should be working hard to deliver a better deal for customers rather than seeking additional revenues that will add to customers' bills."

Premium

4C Offshore Premium, our most popular subscription, gives you full access to use the 4C Offshore WebApp which includes exclusive offshore wind, transmission and vessel reports, news and downloads.

Request a 30 minute Demo

SSE and EDF transmission charge appeal rejected

Back to News

Trending News!