EDF Energy (Thermal Generation) Limited (EDF ETG) sent misleading signals to the National Grid Systems Operator (ESO) about the capabilities of its generation plant between September 2017 and March 2020.
Ofgem found EDF ETG frequently inflated the minimum amount of power that its West Burton B (WBB) generator plant could supply. EDF ETG did this when the plant was not even planning to generate any energy, and in many cases, meant the ESO has to purchase more energy from the plant than needed.
As a result, EDF ETG breached it electricity generation license obligations for not complying with the Grid Code. Ofgem has deemed that for providing "false or misleading signals" regarding the supply of their wholesale energy products, EDF ETG had breached Article 5 of REMIT.
Ofgem recognises that EDF ETG did not recognise that their actions would result in increased overall balancing costs for the ESO, and instead considered that its approach could allow it to provide the ESO with lower prices by trying to recover its costs over greater volume.
EDF ETG has admitted to the breach of Article 5 and has taken action to prevent it from happening again. They have also agreed to pay £6 million into Ofgem's voluntary redress fund.
Cathryn Scott at Ofgem said:
“This case further demonstrates Ofgem’s commitment to monitoring wholesale energy markets in Great Britain and ensuring their integrity on behalf of consumers..”
“Ofgem’s enforcement action sends a strong signal to all energy market participants that they must submit accurate data to the ESO. If they don’t, we have the powers to intervene and we are ready to use them.”