Competition and Markets Authority dismisses SSE appeal against Ofgem
The Competition and Markets Authority (CMA) has ruled against SSE’s appeal against the Ofgem decision to approve proposals to modify industry charging rules.
What’s happening?
SSE launched an appeal against Ofgem’s changes to the calculation of charges paid by electricity generators for use of the electricity transmission system.
Last year the energy regulator announced changes to how charges are calculated prompting a huge backlash from electricity transmission organisations with National Grid leading the charge and appealing to the CMA.
Under the changes to industry rules, Ofgem said that they would better ensure that charges in 2021 and 2022 would be within the range permitted under retained EU law. Despite Brexit, the UK is still following some EU rules and laws.
SSE complained to the CMA that Ofgem was wrong to have approved the changes and that they would result in transmission charges being outside the range allowed under the relevant law.
CMA’s decision
In a Tweet, the CMA said: “We’ve dismissed SSE’s appeal against Ofgem’s decisions to accept code modifications on charges to generators for the electricity transmission system. This means the changes that Ofgem approved will now go ahead.”
The CMA also said that it disagreed with the points raised by SSE and that Ofgem was not wrong to have approved the changes to the calculations with the main reason being that the reasons for this included that the changes made a breach of the law in 2021 / 22 much less likely and further changes were expected to take effect by 1 April 2022.
Ofgem said that it recognised that the changes were imperfect and made clear that it expected National Grid Electricity System Operator Limited, as the transmission system operator, to propose further changes to take effect by 1 April 2022.
‘We are pleased that the CMA has rejected SSE’s appeal and upheld our decision, which as part of a package of measures being delivered through our Targeted Charging Review (TCR), will save consumers around £300m per year’ tweeted Ofgem.
Also read: Ofgem wants a new independent body to lead the way to Net Zero
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