Scottish Power and Scottish & Southern Energy under investigation

Scottish Power and Scottish & Southern Energy are under investigations instituted by the energy regulator, Ofgem on accusations of the two abusing their dominance in the United Kingdom power market.

The probe into the two firms, is distinct from an investigation into energy supply markets initiated on the twenty first February which was set off by public outrage at increasing electricity tariffs.

National Grid possesses only the transmission system in England and Wales and has to pay the two firms for use of their transmission network on the northern side of the border. But the network has constrained capacity to supply power from England to Scotland during peak periods and low generation. This makes the two firms take advantage and charge more for the consumption of their power or for the utilisation of their high voltage transmission lines during those times when power has to be brought in from outside the country.

A Scottish & Southern Energy spokesperson said that no definite allegations had as yet been put forward to SSE, but they were convinced that their actions in the electricity generation market have always been reasonable in and in consistency with the operations of a free market system. He added that any Competition Act investigation was systematic and they would work closely together with Ofgem in order to come to a quick conclusion.

Allegations of overcharging have been levelled against Britain’s big six power firms something which has been in the news lately especially since seventy members of parliament claimed that the UK power market is not fully liberalised and is controlled by six firms, among them Scottish & Southern Energy, Scottish Power, Centrica, EDF Energy, NPower and E.ON.

www.scottishpower.com