Ofgem consults on commitments from SSE

22 June 2016

Ofgem consults on commitments from SSE

Ofgem is today consulting on legally binding commitments from SSE following our investigation into whether SSE's behaviour could have impeded competition in the market for connecting new developments to SSE's electricity distribution networks.

The whole market for providing these electricity connections is worth over £500 million per year in Great Britain with hundreds of thousands of connections made every year, for example, to new housing estates and business premises. Independent companies compete against Britain's regional electricity distribution network operators, such as SSE, to connect new customers to those networks.

Ofgem's investigation identified competition concerns relating to SSE's behaviour in providing services needed to enable it and its competitors' to connect up new development sites. The behaviour in question included inconsistencies in 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.

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's consultation, which runs for six weeks until 3 August 2016, seeks views from interested parties on the appropriateness of Ofgem accepting the commitments offered by SSE.

Notes to editors

1. Investigation and commitments

https://www.ofgem.gov.uk/publications-and-updates/investigation-whether-sse-has-infringed-requirements-chapter-ii-competition-act-1998-andor-article-102-treaty-functioning-european-union-respect-points-connection.

2. The Code of Practice

The Code of Practice obliges DNOs to reduce the impact of their activities on competitors and improve the consistency of arrangements across Great Britain. The Competition in Connections Code of Practice can be found here:

http://www.connectionscode.org.uk/assets/files/15014_CiCCoP_final_April2016.pdf

3. About Ofgem

Ofgem is Britain's independent energy regulator. Its priority is to protect and make a positive difference for energy consumers. It does this through regulating, supervising and developing the energy retail and wholesale markets, and the delivering government schemes.

For more information about Ofgem's work, see Energy facts and figures. Follow @ofgem on Twitter and LinkedIn 

4. For further press information contact:

Lisa O'Brien 020 7901 7426

Out-of-hours media contact number 07766 511470

www.ofgem.gov.uk/news-and-media