Closure of Competition Act 1998 investigation

 

TIDMSSE TIDMBS80 
 
RNS Number : 8786L 
OFGEM 
19 January 2009 
 

R/4 
 
 
MONDAY JANUARY 19 2009 
 
 
OFGEM CLOSES COMPETITION ACT 1998 CASE AGAINST SCOTTISH POWER AND SCOTTISH AND 
SOUTHERN ENERGY 
 
 
Energy regulator Ofgem has decided to close a Competition Act 1998 (CA 98) case 
into the behaviour of Scottish Power and Scottish and Southern Energy in the 
wholesale electricity market. 
Ofgem identified concerns during the investigation regarding the behaviour of 
the two companies in this market. However it considers that going forward, there 
are more effective ways of addressing these issues. 
Ofgem launched the investigation into the two companies last April. This 
followed allegations that during a four-week period in 2007, SP and SSE abused a 
position of dominance that arose from constraints on the high-voltage network 
between England and Scotland. 
When the case was opened the allegations were that SP and SSE withheld 
generation plant from the forward wholesale market while using the same plant to 
supply electricity at excessive prices to National Grid to keep electricity 
supply and demand in balance. 
Ofgem has decided that continuing the investigation would be an inefficient use 
of resources as the likelihood of making an infringement decision under the CA 
98 is low. Ofgem has identified other actions which could address the concerns 
more effectively. It intends to consult on additional powers and / or specific 
policy proposals by the end of March 2009. 
 
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Ofgem is the Office of the Gas and Electricity Markets, which supports the Gas 
and Electricity Markets Authority, the regulator of the gas and electricity 
industries in Great Britain. The Authority's powers and duties are largely 
provided for in statute, principally the Gas Act 1986, the Electricity Act 1989, 
the Utilities Act 2000, the Competition Act 1998, the Enterprise Act 2002, and 
the Energy Act 2004, as well as arising from directly effective European 
Community legislation. 
For further press information contact: 
Chris Lock     020 7901 7225 / 07766 511470 
Trevor Loveday     020 7901 7288 / 07887 652 252 
 
 
 
 
 
 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
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