Power groups fined over connection deadlines

Three power network companies have been fined a total of £1m for missing deadlines for connecting homes and businesses to the electricity system.

Ofgem, the energy industry regulator, imposed a £500,000 penalty on Scottish Hydro Electric Power Distribution, while Central Networks must pay £400,000 and Electricity North West £100,000.

 

Each company had admitted missing the three-month deadline for providing electricity connections. Moreover, companies are obliged to monitor their performance in meeting this standard. The fine imposed on Scottish Hydro was larger because it was the last to demonstrate compliance with this requirement, only introducing the necessary systems in the second half of 2009.

All three companies have accepted Ofgem’s penalty, otherwise the fines would have been higher. The punishment is at the lower end of the scale available to the regulator. Last month, National Grid was fined £8m for exaggerating the progress it was making with replacing old gas mains. The company had referred itself to Ofgem and accepted the penalty.

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