Future Of British Business
Drax Fined £6.1 Million for Charging Extreme Energy Prices
- Firm says it has taken steps to prevent excessive pricing
- Regulator is looking at ways to curb costs of balancing market
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UK power firm Drax Group Plc agreed to pay a £6.1 million ($7.5 million) fine for breaching its license, after charging the grid operator excessive prices to reduce its generation.
The penalty comes as regulator Ofgem reviews the rules for Britain’s balancing market, where the grid fine-tunes electricity supply and demand. Ofgem is looking to reduce record balancing costs — which are spread across consumer bills — by curbing the excessive profits of generators.