Ofgem finds GF Energy Ltd subsidiaries Berangere and Adret submitted inaccurate information under Capacity Market Rules
Press release
Publication date
Industry sector
Supply and Retail Market
Ofgem has found that generators Adret and Berangere provided inaccurate information when applying to prequalify their generating units for the first Capacity Auction in 2014. Both companies, who are now part of GF Energy Ltd, falsely claimed they had already secured planning consent for all of their generating units.
Ofgem found that Berangere, who secured contracts for three generating units, did not have planning consent for one of these units when it applied for the Capacity Auction. Adret secured contracts for two generating units, for which it had supplied correct information. However it falsely claimed that it had planning consent for another unit which failed to win an agreement in the capacity auction.
Because of the failings of these companies, Berangere has had its capacity agreement terminated for the generating unit it did not have planning consent for, and will be disqualified from entering the unit into the capacity auction for the next two years. Ofgem has also taken action to change the Capacity Market Rules ahead of this year’s Capacity Auction. Applicants must now provide the relevant planning consents to National Grid in addition to the declarations made prior to entering the auction.
Berangere and Adret are now subsidiaries of GF Energy Ltd.
Notes to editors
1. Investigation into whether there has been a contravention of Rule 5.13.1(b) of the Capacity Market Rules by Adret Ltd and Berangere Ltd.
Berangere was previously known as GFE 2015 Ltd and Adret was previously known as GFE 2017 Ltd.
2. Capacity market and Ofgem’s role
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 guaranteeing they will provide additional supply at times of system stress; otherwise they will face a penalty.
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 Capacity Market Rules.
Please see National Grid’s balancing the energy network tools for more information. The government has produced an Electricity Market Reforms document for information.
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.
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