Wind farm operators investigated for ‘overstating production’
The energy watchdog is investigating claims that wind farm operators have overestimated the amount of energy they are set to generate, saddling customers with millions of pounds in extra costs.
Wind farm operators are often paid to switch off their turbines when generation outstrips demand to prevent the electricity grid from being overloaded. So-called curtailment payments are based upon the amount of energy that a wind farm company says it will produce.
Some operators overestimate their output, according to reports by Bloomberg, which boosts the amount of money they receive. The sum ultimately is recouped from consumers’ energy bills.
Bloomberg analysed 30 million records between 2018 to June last year to compare wind operators’ daily forecasts of the energy they planned to generate with their actual production when they were not curtailed. Of the 121 wind farms in the analysis, 40 overstated their output by 10 per cent or more on average and 27 overestimated by at least 20 per cent.
It is not possible to determine precisely how much bill-payers have spent because of such overstatements. However, 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, according to Bloomberg’s analysis.
A spokesman for Ofgem said: “Ofgem is investigating the alleged behaviour and has already asked the Energy System Operator to look into this. It is responsible for the day-to-day running of the electricity grid and monitors 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.”
