Ofgem sets larger fines

Suzie Neuwirth
ENERGY firms could receive far higher penalties for failing to supply enough power under new rules announced by Ofgem yesterday.

The regulator argues that the so-called cash out charges currently paid by the companies to network operator National Grid in the case of a shortfall are not high enough.

Firms currently pay up to £300 per megawatt-hour for supply shortages but this could now go up to £6,000 per megawatt-hour in extreme cases.