Ofgem closes investigations into two generators’ compliance with Capacity Market Rules
Press release
Publication date
Industry sector
Generation and Wholesale Market
Ofgem has closed its investigations into Power Balancing Services and GF Power Peaking Ltd. The regulator found no evidence of either generator providing false information about planning consents to National Grid as part of the December 2014 capacity auction.
The investigations into Berangere Ltd, Adret Ltd and Alkane Energy UK continue. The fact these investigations are ongoing does not imply that we have made any findings about non-compliance.
Capacity Market and Ofgem’s role
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 will 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.
The Capacity Market provides incentives for investment in the overall level of reliable capacity needed (both supply and demand-side response) to ensure secure electricity supplies. Potential capacity providers can qualify to participate in a capacity auction where, if successful, they will be awarded a Capacity Agreement. This agreement would give them the right to receive a regular payment in return for which they will guarantee to provide a level of additional supply at times of system stress.
National Grid is the Delivery Body for Electricity Market Reforms and administers and runs the auction process on behalf of DECC. Ofgem is responsible for enforcing compliance with the rules.
Get more information on the government’s electricity market reforms.
About Ofgem
Ofgem is the independent energy regulator for Great Britain. Its priority is to make a positive difference for consumers by promoting competition in the energy markets and regulating networks.
For facts, figures and information about Ofgem’s work, see Energy facts and figures.
Follow us on Twitter @ofgem
For further press information contact:
Lisa O’Brien: 020 7901 7426
Out of hours media contact number 07766 511470