Notice of Decision into whether Adret Ltd (previously GFE 2017 Ltd) and Berangere Ltd (previously GFE 2015 Ltd) complied with the requirements of Rule 5.13.1(b) of the Capacity Market Rules
Decision
Publication date
Industry sector
Generation and Wholesale Market
In May 2015, Ofgem opened an investigation into Adret Ltd and Berangere Ltd’s compliance with Rule 5.13.1 (b) of the Capacity Market Rules.
Adret Ltd were previously known as GFE 2017 Ltd; Berangere Ltd were previously known as GFE 2015 Ltd. Adret Ltd and Berangere Ltd are now subsidiaries of GF Energy Ltd.
The Authority has decided that Adret Ltd and 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 Adret Ltd and 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 Adret Ltd and Berangere Ltd to have contravened a relevant requirement set out in Rule 5.13.1(b) of the Capacity Market Rules in respect of two generating units: Berangere Ltd’s generating unit G15MAT, and Adret Ltd’s generating unit G17JAM.
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.
Adret Ltd and Berangere Ltd have accepted the Authority’s findings and decision.