SSE has appealed to the Competition and Markets Authority over Ofgem decisions relating to the Targeted Charging Review.
SSE Generation and several other SSE Group companies filed documents last week seeking permission to appeal code modifications CMP317/327, which set the Transmission Generation Residual to £0, removing payments being paid to transmission-connected generators, and CMP339.
The modifications change the interpretation of an EU regulation limiting average network charges paid for larger generators to use the transmission network as a result of what Ofgem describes as the “incorrect interpretation” of the regulation.
SSE said in a statement: “SSE is supportive of a modern charging regime and infrastructure which will deliver the flexible electricity system customers need for the future, but recent changes proposed by Ofgem are based on flawed and incorrect technical application of the rules and will unfairly burden generators with increased costs, undermining low carbon investment and the UK’s net zero ambitions.
“We have regretfully submitted an appeal to the CMA and hope a swift resolution can be achieved to deliver the right solution for customers, generators and developers.”
A decision on whether the appeal it will be heard is expected by 26 January.
A spokesperson for Ofgem said it would defend its decision and the appeal would not impact other elements of the TCR, adding: “correcting this error of interpretation will benefit consumers substantially, by reducing the amount consumers pay to large generators through their bills, whilst also creating a more efficient system outcome.”