U.K. energy regulator Ofgem said Thursday that it has rejected a requested modification to industry rules which would have resulted in generators receiving a 120 million-pound ($157.9 million) rebate funded by consumers.
Generators claim that their network charges in 2015-2016 exceeded the cap of 2.50 euros ($2.95) per megawatt hour on transmission charges paid by generators that is set under EU regulations.
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On March 8, 2016, SSE PLC (SSE.LN) submitted "CMP 261," a modification to address the alleged breach by returning GBP120 million to generators.
Ofgem said that it rejected this modification 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 the cap.
If these charges are excluded, the cap on generator-transmission charges hasn't been breached, Ofgem added
"We believe this decision to be the better interpretation of the EU regulation consistent with Ofgem's statutory objectives and duties and in the long-term interests of consumers," the regulator said.
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(END) Dow Jones Newswires
November 16, 2017 03:29 ET (08:29 GMT)