UK 

Ofgem plans clamp down on power station owners

Published: 16:10 29 Jun 2023

Ofgem is planning to clamp down on power station owners making “excessive profits” from supplying the UK electricity network.

The energy regulator said it intends to introduce new licence conditions after it found some generators have been holding back electricity supplies so they can fetch higher prices in the market for back-up power generation.

As a result, costs have been pushed for consumers at the height of last year’s energy crisis, resulting in a total bill of £3.1bn to ensure supply and demand matched in 2021-22.

“The proposed new licence condition will ensure electricity generators don’t take advantage of existing rules to make excessive profits in the Balancing Mechanism,” said Eleanor Warburton, Ofgem’s acting director for energy systems management and security.

“Following on from our previous consultation we are now inviting final feedback from across the industry on the proposed changes, which we hope to have in place to protect consumers this winter.”