The Office of Gas and Electricity Markets (Ofgem) has imposed a penalty on Dorenell Windfarm Limited (DWL) for breaching energy market rules, ordering a payment of £5.53 million.
The energy regulator's investigation revealed that DWL charged excessive prices to reduce output, increasing costs for customers.
DWL, an electricity generator operating in Northern Scotland, agreed to make the payment into Ofgem's Redress Fund, established to support energy consumers.
This is part of Ofgem's enforcement efforts, resulting in over £100 million in penalties from companies breaching market regulations.
DWL has pledged to revise its pricing policy to prevent further breaches.
Cathryn Scott, Director of Enforcement for Ofgem, said: "This company has accepted its error and has agreed to make a significant payment to put it right. Customers – particularly those in vulnerable situations – will rightly benefit from over £5 million as a direct result. We hope this sends a clear message that licence breaches will simply not be tolerated".