Ofgem rejects £120m rebate demand from energy firms, saying consumers would have had to foot the bill

 
Oliver Gill
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SSE led the claim for compensation on behalf of a number of energy firms (Source: Getty)

Britain's top power regulator has thrown out a £120m compensation claim from energy firms, saying it would ultimately have needed to be funded by consumers.

SSE submitted a claim in March 2016 on behalf of a number of firms that were seeking to be compensated for sums paid to connect offshore wind farms to the land-based UK power network.

The firms said the costs they were billed for breached an EU cap on such charges.

Read more: Ofgem scraps "prescriptive" rules for suppliers with new strategy

But watchdog Ofgem today rejected the claims "on the grounds that most, if not all, so-called local network charges, which mainly relate to transmission links connecting offshore wind farms to the grid, should be excluded from this cap".

On the basis that these charges are excluded, the cap on generator transmission charges has not been breached.

The regulator said handing the £120m back to power firms would have ultimately cost the general public in elevated energy bills.

An SSE spokesperson said: “SSE notes the decision by Ofgem to reject the requested modifications and is considering its options.”

Read more: SSE snaps up more of the Dogger Bank offshore wind farm

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