(Sharecast News) - Industry watchdog Ofgem fined FTSE 100-listed energy group SSE a total of £2.06m on Thursday for failing to publish inside information about the wholesale energy market.
Ofgem said SSE was required to publish any inside information likely to "significantly affect the price of wholesale energy" in an "effective and timely" manner, something it did not do after signing a non-binding head of terms agreement with National Grid on 22 March 2016.
Instead, the watchdog said SSE's decision to wait until 30 March to make the announcement resulted in four days trading without the market knowing that more generation was likely to be available than previously thought.
"It is likely this led to some market participants paying more for wholesale electricity than they should have," said Ofgem.
In reaching its decision, Ofgem said it had taken into account that Wholesale Energy Market Integrity and Transparency regulation was "a relatively new obligation at the time", that guidance on the publication of inside information of this type was limited and that the finding was the first of its kind under REMIT.
Ofgem chief executive Jonathan Brearley said: "This fine sends a strong message to market participants that they must be familiar with, and keep to, their obligations under REMIT rules or face enforcement action by Ofgem."
As of 0930 BST, SSE shares were up 0.46% 1,265.78p.
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