Electricity firms face penalties for ‘manipulating’ grid in Ofgem crackdown

Regulator aims to stop power plants' tactic that costs households hundreds of millions of pounds

Electricity companies will no longer be able to deploy a controversial tactic that forces up bills at the expense of consumers, the energy watchdog has said as it unveiled rules designed to curb firms making excessive" profits in the winter.

Ofgem said electricity generators could face stiff penalties" of up to 10% of their revenue for breaching the new regulations, which aim to prevent manipulation of the complex system that keeps Britain's electricity grid stable.