OFGEM reveals a £2.1 million fine on SSE plc for disclosure breach
- OFGEM reveals a £2.1 million fine on SSE plc for disclosure breach.
- SSE plc secured a 30% discount on the initially expected penalty.
- The energy firm invested £580 million in the Viking Wind Farm.
In an announcement on Thursday, Britain’s energy regulator revealed to have fined SSE plc (LON: SSE) £2.1 million as the Perth-headquartered company failed to publish information related to its future generation capacity on time. SSE also launched a trading platform in August for large energy users to create a new source of income for balancing supply and demand.
Shares of the company opened about 1% up on Thursday. SSE plc is now exchanging hands at £12.65 per share that translates to roughly 15% decline year to date in the stock market. In late March, when the impact of COVID-19 was at its peak, the stock had tumbled to as low as £10.72 per share. Learn more about how do people make money on the stock market.
SSE secured a 30% discount on the penalty
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According to OFGEM (energy regulator), the disclosure breach attributed to Fiddler’s Ferry power station could significantly affect wholesale electricity rates in the United Kingdom. The renewable power generator acknowledged that its recent approach failed to meet the requirements laid out by the watchdog.
The energy regular appreciated SSE for not acting in bad faith. The imposed fine, it said, is aimed at warning all players of the energy market that strict action will be taken in the event of not meeting the requirements.
The watchdog also highlighted on Thursday that SSE’s cooperation throughout its investigation and early settlement helped it qualify for a discount of 30% on the penalty that was originally expected.
SSE invested £580 million in the Viking Wind Farm
The fine on SSE plc was the 1st of its kind not only in the United Kingdom but also in Europe at large, for not disclosing information related to future generation capacity effectively and within the deadline, as per the Regulation on Energy Market Integrity and Transparency (REMIT).
The news comes months after SSE plc made a sizable £580 million investment in the Viking Wind Farm that is expected to earn the title of Britain’s largest onshore wind farm. The giant wind project that is likely to complete in 2024 will create roughly 400 jobs and cover 17,396 acres in total.
SSE plc performed fairly upbeat in the stock market last year with an annual gain of more than 35%. At the time of writing, the energy company has a market cap of £13.18 billion and a price to earnings ratio of 31.19.