DNOs could face Competition Commission over power connections

Opening up the electricity connections market is intended to help customers and those connecting small-scale generation get better service or lower prices.

DNOs have until the end of 2013 to apply to Ofgem for price regulation to be lifted in each of nine market segments. If they fail the regulator’s “competition tests” they could be referred to the CC.

Scottish Power Energy Networks (SPEN) and SSE Power Distribution have yet to pass a single test.

SPEN is going for all nine segments at once, having last month become the final DNO to start making its case. A spokesman said: “We believe that the SPEN submission shows some of the strongest competitive market penetration in the UK.”

Electricity North West is the most advanced, having passed six segments. However, in August it failed a seventh test.

Michael Proctor, head of connections for Electricity North West, said he was “disappointed” by the recent failure to “factors outside our control – namely the low volume and value of work discouraging competitors from entering the market”.

UK Power Networks is not far behind, having passed three more segments in August to bring its total to five. Director of connections Mark Adolphus said: “At this stage in the process we are pleased with the progress we have made.”