ao link
0 £0.00
This item was added to your basket
Credit Strategy homepage
LinkedIn
Twitter
Intelligence, Insight and community for responsible professionals in credit

SSE fined £2m by Ofgem 

Ofgem has fined SSE £2.06m for failing to publish inside information about the wholesale energy market.   

According to Ofgem, SSE breached legal requirements on the publication of inside information because it made the wrong decision about whether it was in possession of inside information.

 

A statement from the regulator explained that this was likely to have had a significant effect on forward wholesale electricity prices.

 

In February 2016, SSE said that three of the four generating units at Fiddler’s Ferry power station were going to close. On March 22 2016, SSE signed a non-binding agreement with National Grid that meant the site would likely stay open. Fiddler’s Ferry has the capacity to provide three percent of Britain’s peak electricity needs.

 

According to Ofgem, SSE did not publish this information in a “timely manner”. The regulator said that SSE waited until March 30 2016 to make the announcement.

 

Ofgem added: “SSE’s delay in making a public announcement resulted in four days trading without the market knowing that more generation was likely to be available than previously thought. It is likely this led to some market participants paying more for wholesale electricity than they should have.”

 

SSE’s energy director, Martin Pibworth, said: “SSE takes its market disclosures extremely seriously and acted in good faith, publishing details of the contract for Fiddlers Ferry power station once signed, in line with our interpretation of the regulations at the time.


“We subsequently understood that Ofgem’s interpretation required disclosure to the market at an earlier stage. We admit that our approach was not in line with this requirement.

“SSE did not benefit from disclosing only once the contract was signed and remains committed to clear and transparent rules for all market participants. We will be pressing regulatory authorities for additional guidance for market participants going forward.”

 

Please login to continue reading this article.

Not a member?

Become a member

FREE registration. No credit card required

Register now
  • Stay up-to-date with industry news and appointments
  • Hear about events first
  • Read 1 free Premium article per month

Become a premium member

From as little as £3.48 per week

Become Premium
  • All the perks of a standard member plus:
  • Access to the entire Credit Strategy website
  • 12 months subscription to Credit Strategy Magazine
  • 25% discount to all conferences
  • Exclusive access to Premium Member only roundtables
  • 50% off award entry fees

GET THE LATEST INDUSTRY NEWS STRAIGHT TO YOUR INBOX

READ NEXT

FCA to streamline its decision-making processes

FCA to streamline its decision-making processes

Language changes needed to support diversity, report finds

Language changes needed to support diversity, report finds

Phillips & Cohen launches new data management platform

Phillips & Cohen launches new data management platform

Upcoming events

Women in Credit Awards 2021

Car Finance Autumn Conference

Car Finance Awards 2021

Credit Strategy
LinkedIn page

Member of

Did you find our website useful?

Thank you for your input

Thank you for your feedback

creditstrategy.co.uk – an online news and information service for the UK’s commercial and consumer credit industry. creditstrategy.co.uk is published by Shard Financial Media Limited, registered in England & Wales as 5481132, Axe & Bottle Court, 70 Newcomen St, London, SE1 1YT. All rights reserved. Credit Strategy is committed to diversity in the workplace. @ Copyright Shard Media Group