Request for modification of Special Condition AA of Electricity Generation Licences held by Centrica Group
Decision
Publication date
Industry sector
Generation and Wholesale Market
Related links
On 11th December 2017, Centrica Group formally requested that Ofgem begin the process of removing Schedule B of the Special Licence Condition AA from their Electricity Generation Licences.
Centrica’s main argument in support of their application relates to changes in the group’s strategy. Structural changes have led them to sell some of their generation assets, thereby reducing their market share when compared to 2014. Centrica considers that, as a result of these changes, they should no longer be subject to Special Condition AA: Liquidity in the Wholesale Electricity Market.
This letter sets out our assessment of Centrica’s request and our reasons for consenting to it. To give effect to the changes, pursuant to Paragraph AA.1 of the Special Condition, we also have published today a Direction. We have considered our statutory duties and in particular our principal objective in making this decision.