22nd Jun 2016 06:17
LONDON (Alliance News) - UK energy regulator Ofgem Wednesday said it is consulting on legally-binding commitments from major utility firm SSE PLC in regards to its investigation about whether the company's behaviour impeded competition in the electricity distribution network.
Ofgem has been investigating SSE after identifying competition concerns relating to SSE's behaviour in providing services needed to enable it and its competitors' to connect up new development sites within the distribution network.
"The whole market for providing these electricity connections is worth over GBP500.0 million per year in Great Britain with hundreds of thousands of connections made every year, for example, to new housing estates and business premises," said Ofgem.
"Independent companies compete against Britain's regional electricity distribution network operators, such as SSE, to connect new customers to those networks," the regulator added.
Ofgem said the "behaviour in question" includes inconsistencies in SSE providing "essential information" to competitors when competing to provide connections.
"SSE has agreed to put in place new processes and procedures to ensure consistency in its pricing and when identifying points of connection to its electricity distribution networks. Ofgem considers that these commitments will meet the competition concerns that have been raised," said Ofgem.
"Since the investigation was opened, a new Code of Practice has been introduced to force companies to open up competition in the electricity connections market. Today's proposed commitments from SSE supplement these new rules to ensure that the company effectively addresses the issues raised during the investigation," Ofgem added.
The consultation period will last for six weeks and end on August 3, and Ofgem has welcomed interested parties to comment on the appropriateness of Ofgem accepting the commitments offered by SSE.
By Joshua Warner; [email protected]; @JoshAlliance
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
SSE