Berangere Ltd: Investigation into whether there has been a contravention of Rule 5.13.1(b) of the Capacity Market Rules

Opened:
May 2015
Closed:
Dec 2015
Company:
Berangere Ltd
Regulation Area:
Sectoral Regulations
Breach Area:
Capacity Market Rules

In May 2015, Ofgem opened an investigation into Berangere Ltd’s compliance with Rule 5.13.1 (b) of the Capacity Market Rules.

In particular Ofgem investigated whether Berangere Ltd provided false or misleading information to the Delivery Body regarding whether it had obtained all Relevant Planning Consents in relation to certain Capacity Market Units (CMUs) which participated in the T-4 capacity auction in December 2014.

The Authority has decided that Berangere Ltd contravened relevant requirements (as defined in section 25(8) of the Electricity Act 1989), namely the requirements of Rule 5.13.1(b) of the Capacity Market Rules.

The Capacity Market is part of the Government’s reforms intended to ensure sufficient capacity on the system to provide a reliable electricity supply. National Grid run an annual auction to decide which generators and providers of demand side response will be awarded a capacity agreement, in return for providing capacity at times of system stress. Companies had to submit applications for the first of such auctions in November 2014 and National Grid awarded the contracts in January 2015.

The Authority has found that Berangere Ltd submitted false and misleading information when applying to be part of the 2014 capacity auction, which is a Prohibited Activity under the Capacity Market Rules. As a result the Authority found Berangere Ltd to have contravened a relevant requirement set out in Rule 5.13.1(b) of the Capacity Market Rules in respect of one generating unit:G15MAT.

The Authority has considered all of the circumstances of the investigation and the Prohibited Activities undertaken by Adret Ltd and Berangere Ltd, which belong to the same group of companies, and decided to issue a direction to the Delivery Body to terminate the capacity agreement awarded in relation to G15MAT. Additionally, G15MAT is disqualified from participating in capacity auctions taking place in the next two delivery years.

Berangere Ltd has accepted the Authority’s findings and decision.