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Npower Fined for Data Reporting Error by Ofgem

19 May 2014

Ofgem has today announced a £125,000 fine for npower, after they were found to have made an error in reporting data relating to the Government’s Feed-in Tariff (FIT) and Renewables Obligation (RO) schemes.

The size of today’s penalty takes into account that npower has already voluntarily forfeited Renewable Obligations Certificates valued at £896,900 (including interest at 5.5% per annum on the amount) and will make a late payment of £63,000 to account for the FIT reporting error. These steps will address the market impact caused by the reporting error.

Under the RO, electricity suppliers are required to obtain a proportion of electricity supplied to British customers from renewable sources. Under the FIT scheme, suppliers are required to provide an incentive to small-scale generators of renewable energy in the form of FITs payments. Ofgem administers these schemes on behalf of the Government and requires suppliers to provide accurate supply data to determine their obligations under the RO and contribution to the FITs payments fund based on market share.

The reporting errors were due to incorrect information being used by npower to calculate the amount of electricity supplied to customers. This resulted in npower underreporting these amounts by 0.08% in 2010-11 and by 0.28% in 2011-12. npower identified and reported the error to Ofgem, and also took steps to prevent this from reoccurring. The error was not repeated in 2012/13.

Story appears courtesy of Ofgem.