Ofgem is satisfied that legally binding commitments from SSE following the regulator’s investigation into the company’s behaviour hampered competition in the market for connecting new developments to SSE’s electricity distribution 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. This 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 it 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. The proposed commitments from SSE supplement these new rules to ensure that the company effectively addresses the issues raised during the investigation.
The electricity connections market is worth over £500 million per year in Great Britain, with independent companies competing against Britain’s regional electricity distribution network operators, such as SSE, to connect new housing estates and business premises to those networks.
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.
Distribution networks’ future in question (members only)