Ofgem to change capacity auction rules after diesel energy parks falsified data

Energy regulator Ofgem has found that generators Adret and Berangere provided inaccurate information when applying to prequalify their diesel-fuelled generating units for the first Capacity Auction in 2014.

Both companies, who are now part of GF Energy Ltd, falsely claimed they had already secured planning consent for all of their generating units.

Ofgem found that Berangere, who secured contracts for three generating units, did not have planning consent for one of these units when it applied for the Capacity Auction. Adret secured contracts for two generating units, for which it had supplied correct information. However it falsely claimed that it had planning consent for another unit which failed to win an agreement in the capacity auction.

Because of the failings of these companies, Berangere has had its capacity agreement terminated for the generating unit it did not have planning consent for, and will be disqualified from entering the unit into the capacity auction for the next two years.

Ofgem has also taken action to change the Capacity Market Rules ahead of this year’s Capacity Auction. Applicants must now provide the relevant planning consents to National Grid in addition to the declarations made prior to entering the auction.

Berangere and Adret are now subsidiaries of GF Energy Ltd.