SSE and EDF Get a Rejection Letter from CMA

The UK Competition and Markets Authority (CMA) has dismissed an appeal by SSE and EDF Energy against Ofgem’s decision to reject their request to modify industry rules.

In 2016, SSE requested a change to industry rules, which would have resulted in generators receiving a GBP 120 million rebate from the National Grid.

The company argued that GB generators had paid more in transmission charges in 2015/16 than the maximum permissible under EU law.

However, Ofgem rejected SSE’s request in November 2017, concluding that the maximum permissible level of charges under EU law had not been breached.

SSE and EDF subsequently appealed to the CMA, with the main point of dispute being whether there was an exclusion from the EU cap on transmission charges for the cost of connections between offshore wind farms and the onshore grid.

The CMA concluded that, applying the correct approach to EU law, there was such an exclusion and therefore there had not been a breach of the cap and Ofgem was entitled to reject the modification request.

CMA’s determination with full reasons for the dismissal of the appeal will be published soon, the UK government said.