Power giants face probe
TWO of Britain’s biggest electricity companies are to be investigated by the energy regulator over allegations of market abuse.
Watchdog Ofgem said yesterday it had launched a probe into Scottish Power and Scottish and Southern Energy (SSE) following a complaint about their dominant positions in power generation.
Scottish Power, owned by Spanish group Iberdrola, and FTSE 100 member SSE, are the major electricity generators in Scotland and also export power south of the border. SSE trades as Southern Electric, Scottish Hydro and Swalec.
SSE said: “No specific allegations have yet been put to SSE but we are confident our actions in the electricity generation market have always been justifiable in economic terms and consistent with a competitive market.” Its shares closed down 28p at 1404p.
A Scottish Power spokesman said: “We are confident our participation in the constrained market has been lawful and appropriate at all times.”
Ofgem said that the probe was separate from an investigation into the energy supply markets launched in February.
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