Ofgem has fined electricity generator Dorenell Windfarm Limited (DWL) £5.53 million for charging “excessive prices to reduce output” and breaching one of its license conditions.
DWL is a 59 turbine onshore wind farm with a capacity of 59.3MW, located south of Dufftown in Northern Scotland, and is operated by EDF Renewables.
Following a review, the energy regulator determined that DWL’s prices “did not properly reflect the financial benefits of reducing its output related to avoided payments that otherwise would have been required by the government’s Contracts for Difference scheme.”
This meant that the prices DWL set, aiming to reduce its output, likely led to the generator “recovering more than was necessary.”
Transmission system constraints have meant that since 2020 DWL has been regularly required to reduce its output.
DWL said that this was an unintentional breach, and it has committed to adjust its bid pricing policy to avoid future breaches.
The £5.53 million will be paid into Ofgem’s Redress Fund, which supports projects an schemes helping energy customers in vulnerable situations.
Cathryn Scott, director of enforcement for Ofgem called the review: “Another win for customers through Ofgem’s robust enforcement work has been secured.”
Scott continued: “This company has accepted its error and has agreed to make a significant payment to put it right. Customers – particularly those in vulnerable situations – will rightly benefit from over £5 million as a direct result. We hope this sends a clear message that licence breaches will simply not be tolerated.”
