Small energy generators have accused the ‘Big Six’ UK utilities of attempting to influence the energy market in their favour.
The Flexible Generation Group, which represents small-scale, flexible energy producers, said this week that the major utilities are ‘acting like the Mafia’ and ‘ganging up on’ smaller competitors.
At issue is energy regulator Ofgem, which the Flexible Generation Group says is biased in favour of large utilities and is poised to ‘decimate’ their sector and consolidate the utilities’ dominance of the energy market.
In a statement, the group said Ofgem’s current organization, especially its Connection and Use of System Code panel, ‘give[s] large energy firms undue influence over the reform process and changes in regulation’. In one such change, Ofgem has indicated that it could accept the panel’s recommendation to impose transmission charges on embedded flexible electricity generators.
‘The small new entrants have no representation on this panel, despite requests to have their voices heard and interests represented,’ the group said.
It added that small generators ‘play a critical role in rapidly providing rapid quantities of power when there are short-term periods of low renewable production – particularly from wind and solar power’ and that ‘at present, they are delivering the lowest cost new generation capacity to Britain’.
Members of the Flexible Generation Group include Alkane Energy, Eider Reserve Power, Oxford Capital, PeakGen Power, Prime Energy Ltd and Welsh Power.