SSE under investigation and Ofgem announce price comparison rules
The watchdog are going to be looking at the way housing developments and other sites who have not yet been connected to the grid choose where they get their power from. It looks like, although far from confirmed, that someone's been up to no good.
Ofgem wants to increase competition in this particular market but had found evidence that SSE breached competition law, so they want to look into the whether or not the energy firm put their rivals at a disadvantage.
This follows a separate announcement from the regulator, who published new rules for price comparison websites who must now meet tighter standards on how they relay their tariffs. These new rules come under the woolly name of 'the confidence code' and has been put together to ensure customers can trust that deals aren't being hidden by price comparison sites.
Ofgem said that, from now on, sites are going to have to show the companies with who they have commission arrangements with, in a prominent fashion. They'll also have to make it clear that they earn commission on certain tariffs.
Comparison sites have to meet these rules by the end of March or they'll be in all manner of trouble.
As well as that, as we mentioned yesterday, Ofgem will continue to keep an eye on the Big Six energy suppliers to make sure they're not ripping everyone off. The regulator wants to improve competitiveness, so we could be seeing more prominence from smaller suppliers with potentially better deals in 2015.
Maxine Frerk, Ofgem's senior partner for distribution, said: "We are requiring electricity network companies to work quickly to resolve the issues identified in the connections market, to reduce the hassle of getting connected to the grid and help lower costs for customers. We are determined to ensure this part of the energy market works in customers' interest and will use the full range of our powers to do so."
SSE said: "SSE acknowledges Ofgem's announcement of an investigation into its distribution business's provision of electricity connections services in central southern England. SSE will co-operate fully with the investigating authorities and will not make any further comment until the investigation is completed."