9 April 2008
Energy companies could be hit with fines from the regulator Ofgem if it is found that they have not been competitive.
A fine of up to 10% could be handed out to both Scottish and Southern Energy (SSE) and ScottishPower if it is proved that they have acted in an unfavourable manner.
The allegations link back to an event that occurred last year when both of the energy providers took power stations out of action.
In the wake of this, the National Grid had to buy wholesale electricity from the Scottish market for up to £750 a megawatt hour. Such a development took place because power channels between England and Scotland were loaded too high.
Both of the firms denied that they had done anything untoward and protested their innocence.
"We are confident that our actions have always been justifiable in economic terms and consistent with the operation of a competitive market," SSE asserted.
This week, it was revealed that Centrica is hoping to join in with a consortium looking to buy British Energy.
© 2008 Adfero Ltd
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