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Ofgem drops investigation into energy giants
Tuesday 20 January, 2009
By becca.talbot@consumerchoices.co.uk
Britain’s energy regulator has abandoned its competition case against energy companies Scottish Power and Scottish & Southern Energy.
Ofgem was investigating claims that Scottish Power (www.scottishpower.co.uk) and Scottish & Southern Energy had abused their position of dominance in the Scottish wholesale electricity market.
Ofgem launched the investigation into the two companies last April following allegations that during 2007 neither company was making its power stations available to the wholesale energy market, but then used the same stations to supply electricity at excessive prices to the National Grid.
The energy regulator said that while it had abandoned the competition case it was looking at more effective ways of addressing the issues that had been raised. Ofgem said it plans to consult on additional powers or specific policy proposals, or both, by the end of March 2009.
Chris Eagle, commercial manager at EnergyChoices.co.uk said: “The decision by Ofgem to drop the investigation into the energy suppliers will be welcomed by Scottish Power and Scottish & Southern, but may be seen as a backward step for ‘consumer rights’.”
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