Perth-based SSE is one of two energy providers at the centre of an investigation by market regulator Ofgem over the recovery of costs for grid services.
Ofgem is consulting on National Grid Plc’s request to recover the rising costs of two contracts that it agreed with SSE Plc and Drax Group Plc.
The contracts are worth £113 million and included Black Start services.
Under Black Start, certain generators start up and provide electricity to the transmission system without an external power supply.
Ofgem said that it had set a cost target for National Grid for these services and that National Grid has spent significantly more money than the agreed target.
The cost of Black Start services, traditionally the preserve of Britain’s coal-fired generators, has grown as coal plants have closed and operating costs risen.
Ofgem must decide whether to grant National Grid’s request in part or in full.
National Grid agreed a grid services deal with SSE for its Fiddler’s Ferry power station in Widnes, north-west England, and Drax through a tender process, Ofgem said.
SSE extended the lifespan of its Fiddler’s Ferry coal-fired power station until at least March 31, 2017 after securing a contract with National Grid to provide backup power for winter 2016/17.It previously said the plant would likely close this year.
Ofgem has powers to disallow some or all of the expenditure on these contracts if it judges the case for recovering the money has not been met.
A spokesperson from SSE said: “SSE’s tender reflected the costs associated with Fiddler’s Ferry providing the Black Start services required by National Grid.
“The competitive tender process is a matter for them.”
