A SCOTS energy firm is to pay back cash after administrative errors led to it receiving more than £4 million more than it was entitled to under a renewable energy scheme.

Perth-based energy giant SSE is to pay out upwards of £705,000 after the administrative mistakes meant it had overinflated its renewable energy payments status.

The Scottish Hydro Electric owner will pay the cash to the feed-in tariffs levelisation fund and in redress after overstating to Ofgem the costs it incurred through making payments to eligible low carbon generators.

As a result of the error, the supplier received £4.07m more than it was entitled to in payments from the annual fund.

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The feed-in tariffs scheme, a government programme, is designed to promote the uptake of renewable and low-carbon electricity generation technologies.

The scheme requires participating licensed electricity suppliers to make payments on both generation and export from eligible installations.

SSE reported the error to Ofgem and has paid back the overpayment. The supplier has agreed to pay a further £455,705 in interest to the fund.

It has also agreed to pay £250,000 to Ofgem’s voluntary redress scheme to help support vulnerable customers.

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An independent audit has been carried out to identify the causes of the error, the company told the London Stock Exchange.

It recommended actions to improve SSE’s reporting processes in the scheme and reduce the risk of future non-compliance, which SSE is currently implementing.

It was given a stipulation to report the outcomes of its changes to Ofgem.

The watchdog said: “Ofgem has now closed this compliance case without taking enforcement action, taking into account the steps SSE has taken to address its failings and the redress it has agreed to pay.”