Utility company SSE has offered a series of legally binding commitments to address competition concerns over the way it handles electricity connections for new developments.
The entire UK market for new connections is worth more than £500 million annually.
During a review of the sector by industry regulator Ofgem in 2014, concerns were raised that SSE may have been involved in anti-competitive behaviour when providing non-contestable electricity connection services through its Southern Electric’s Power Distribution (SEPD) network.
The watchdog formally opened an investigation into SSE’s practices in January last year.
In September, the Perth-based utility wrote to Ofgem and offered to provide commitments to alter its conduct to alleviate the competition concerns.
Ofgem continued its investigations in relation to SSE and certain independent distribution network operators (IDNO) and independent connection providers (ICP).
Among the practices identified as giving concern were that SEPD applied additional or higher non-contestable costs to independent operators than it charged to its own connections business for equivalent works.
SSE stressed that Ofgem had not made a finding questioning the legality of its processes.
However, a spokesperson said the company had agreed to ensure quotations for non-contestable services were now provided on a “broadly equivalent basis” and offered to physically separate its non-contestable and contestable connection teams.
“SSE has also offered to revise its external and internal policies and procedures as they apply to connection services and to put in place a number of reporting measures which will enhance transparency and allow Ofgem to monitor implementation of and compliance with these commitments,” the spokesperson said.
“These commitments show SSE’s continued support for Ofgem’s work in promoting a more competitive electricity connections market.”
Ofgem has now opened a public consultation on SSE’s commitments.
It will run until August 3.