Suppliers fined in new Ofgem action

mattBusiness Electricity, Business Gas, Energy Efficiency, Utilities Market Regulation

Scottish Hydro Electric and 2 other power grid firms have been fined by Ofgem.

Pylon Tower

The three companies include two major players: Scottish Hydro-Electric Power Distribution (owned by SSE), Central Networks (owned by E.ON) and a third smaller firm, Electricity North West.

The fines are for failure to connect customers to the national energy grid within the compulsory 3 month deadline.

SHEPD and Central Networks will have to pay £500,000 and £400,000 respectively. Whilst Electricity North West will receive a smaller fine of £100,000.

These grid companies hold a monopoly over their regions, leaving customers with no alternative should they receive bad service. This is why Ofgem deems it vital that customers receive a swift connection.

Ofgem have confirmed the fines have been reduced in recognition of co-operation by the firms.

The energy market regulator has also released a statement regarding smart meters.

Ofgem’s smart meter caution

Due to the government initiative of the “smart grid”, all homes will have a smart meter by 2020. The roll-out has started to some households already.

Ofgem have stated it is important that customers who receive smart meters are not faced with a barrier to switching supplier.

Ofgem have conceded however that should a customer switch supplier they may lose some services or benefits of the new technology.

There are concerns this could lead to suppliers discouraging their customers to seek a better service elsewhere.

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