Scottish wind farm fined £5.5 million for overcharging national grid

Dorenell Windfarm Limited (DWL) began charging “excessive prices” when it was asked to reduce its output.

Following a period of engagement with Ofgem, DWL will pay £5.53 million into Ofgem’s Redress Fund, which takes payments from companies that have breached market rules and directs it into projects and schemes to support energy consumers in vulnerable situations.

On this occasion, following a review carried out by Ofgem, DWL has accepted it breached one of its licence conditions. Ofgem considers that DWL charged excessive prices to reduce output where this was required to keep the system balanced and the breach pushed up costs for consumers.

Ofgem’s review found that DWL’s prices did not properly reflect the financial benefits of reducing its output related to avoided payments that otherwise would have been required by the Government’s Contracts for Difference scheme.

It also found that some of the assumptions used by DWL when setting its prices likely led to it recovering more than was necessary to cover the costs of reducing its output.

Director of enforcement for Ofgem, Cathryn Scott, said: “Another win for customers through Ofgem’s robust enforcement work has been secured. This company has accepted its error and has agreed to make a significant payment to put it right.

“Customers – particularly those in vulnerable situations – will rightly benefit from over £5 million as a direct result. We hope this sends a clear message that licence breaches will simply not be tolerated.”