Ofgem has confirmed it is investigating accusations that wind farm operators overstated their output, earning them millions in curtailment payments.
Analysis conducted by Bloomberg, which examined 30 million records from 2018 to June last year, compared wind farm operators’ daily generation forecasts to their actual production when they were not curtailed.
It found that out of 121 wind farms in the analysis, 40 overstated their output by 10% or more on average, and 27 of those overestimated by at least 20%.
Bloomberg said that it was impossible to determine exactly how much billpayers paid due to the overstatements. However, it added, assuming a similar rate of overestimation during the times that those 40 farms were paid to stop generating, consumers would have overpaid an estimated £51 million since 2018.
Following the allegations, an Ofgem spokesperson said: “Ofgem is investigating the alleged behaviour and has already asked the Energy System Operator (ESO) to look into this – they are responsible for the day to day running of the electricity grid and monitor the behaviour of energy market participants.
“Ofgem will work closely with the ESO to consider all the facts and if it finds evidence of egregious action or market abuse, enforcement action will follow.
“Ofgem will continue to work to protect market integrity and the best interests of consumers, as demonstrated by the recent cases we have concluded against generators who charged excessive prices behind transmission constraints.”
In a post responding to the reports on social media, energy minister Andrew Bowie said: “It is completely unacceptable to overcharge for people’s bills. We will not stand for it.
“I have today spoken with Ofgem to seek assurances. They are investigating and working with ESO to asses the situation. British energy generators must operate at the highest standards.”