InterGen to pay GBP 37 million for misleading National Grid (Ofgem)
Ofgem found that on four days in October and November 2016 InterGen told National Grid ESO that its power stations would not generate through the evening Darkness Peak, was paid to be extended on until the peak, and then resubmitted notifications showing the plants would generate. It also found inflated stable export limits submitted with no technical reason. The penalty was GBP 24,500,000 after a 30% settlement discount, plus GBP 12,791,000 restitution.
On this page
The decision
- Authority
- Ofgem (OFGEM), Great Britain
- Published
- 15 April 2020
- Participants
- InterGen (UK) Ltd; Coryton Energy Company Ltd; Rocksavage Power Company Ltd; Spalding Energy Company Ltd
- Commodity
- Electricity
- Market
- GB Balancing Mechanism
- Conduct period
- 31 October, 7, 8 and 15 November 2016
- REMIT
- Article 5 (Market manipulation)
- Type of conduct
- Misleading balancing data
- Penalty
- GBP 37,291,000 in total: a GBP 24,500,000 penalty (GBP 35,000,000 before a 30% settlement discount) and GBP 12,791,000 restitution
- Status
- Final (settled)
What Ofgem found
Ofgem's final notice of 25 March 2020 found that InterGen breached Article 5 of REMIT on 31 October, 7 November, 8 November and 15 November 2016. It addresses InterGen (UK) Ltd and the Coryton, Rocksavage and Spalding station companies. Ofgem found both deception through orders using misleading generation data and dissemination of information the sender knew or ought to have known was misleading.
The notice also finds breaches of Standard Licence Condition 5.1 and Grid Code obligations. Ofgem said dynamic parameters must reasonably reflect a unit's expected true operating characteristics and participants must use reasonable endeavours to keep the system operator's data accurate.
What the notice describes
The notice says traders usually submitted Physical Notifications between 07:00 and 11:30 showing that plants would produce no electricity from noon onwards. Staff called this 'dropping' or 'pulling the PN'. Ofgem found these notifications false: InterGen intended to generate and had contractual supply commitments it could meet by generating or buying electricity.
Ofgem found that InterGen bought insufficient electricity to meet those commitments, particularly during the evening 'Darkness Peak', around 17:00-19:00. Staff knew or ought to have known that high within-day prices meant they could not buy enough. Nevertheless, the notifications told the system operator the stations would not generate during that period.
On each occasion, the system operator paid to keep at least one plant running at minimum output from noon until the peak or shortly before it, making it available for the peak. Generally between 13:30 and 15:30, after securing that extension, traders resubmitted notifications showing generation through the peak and the rest of the day.
Ofgem also found that staff sometimes inflated Stable Export Limits, the minimum output at which a station can generate stably. This made the operator buy a larger volume to keep it running. The notice acknowledges that dynamic parameters may reflect commercial matters to a limited extent, but found no underlying technical reason for these increases: they served commercial gain.
The penalty
Ofgem determined a GBP 35,000,000 penalty. InterGen admitted the breach and settled during the early settlement window, receiving a 30% reduction to GBP 24,500,000 under Ofgem's REMIT Penalties Statement. Separately, it agreed GBP 12,791,000 restitution for those affected, payable to the system operator. Together the payments total GBP 37,291,000.
The notice required payment within 42 days of service and provided that a reference of the decision notice to the Upper Tribunal would cause the final notice to cease to have effect. It does not explain the construction of the GBP 35,000,000 starting figure. Ofgem's press release says another participant raised concerns and its investigation opened in May 2017.
For a surveillance function
The notice links the misleading signal to the participant's supply commitments, purchases, generation intentions and technical declarations. Its findings therefore depend on the sequence of notifications and revisions as well as executed balancing trades, including why a plant's declared minimum output changed.
Sources
- Ofgem, Final notice regarding the imposition of a financial penalty on InterGen, 25 March 2020 (Decision)
- Ofgem, Ofgem requires InterGen to pay GBP 37m over energy market abuse, 15 April 2020 (Press release)
- ACER, overview of REMIT sanction decisions (ACER register)
Sources read on 27 October 2026. This page restates what the authority published and adds no finding of its own. A decision under appeal is not final, and its status may have changed since: check the source before relying on it.