Ofgem fines E.ON and Scottish & Southern #1m for connection delays
Network companies owned by Scottish & Southern and E.ON have been fined almost £1m for failing to connect wind farms and homes to the electricity grid quickly enough.
By Rowena Mason 7:00AM GMT 08 Feb 2011
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Ofgem, the energy regulator, hit Scottish Hydro Electric Power Distribution, which is owned by Scottish & Southern Energy, with the largest fine of £500,000.
Scottish & Southern Energy
Central Networks, owned by E.ON, will have to pay £400,000, and the independent Electricity North West will pay £100,000 for breach of connection deadlines.
Network companies have monopolies in their regions and are heavily monitored by Ofgem on their performance and how much they are allowed to charge customers.
Stuart Cook, senior partner of smarter grids and governance at Ofgem, said: "Today's penalty sends a clear message that the companies must meet the standards set by Ofgem for connection services.
"We recognise that all three companies have taken steps to improve their connection services, in some cases prior to the commencement of the investigation, but they should have taken this action sooner."
Customers can now claim back up to £200 per working day for connection delays.
The previous fine for this offence was a £2m penalty imposed in 2009 on EDF Energy Networks, since sold to Hong Kong billionaire Li Ka-Shing.
Network companies are going to need to find £30bn to upgrade Britain's electricity wires, pipes and pylons over the next decade.
Ofgem warned in December that electricity network companies are putting customers at an "unacceptable" risk of power cuts as they try to maintain Britain's ageing infrastructure.
In a letter to all operators, including Scottish Power, Scottish & Southern, Warren Buffett's CE Electric and E.ON, it threatened to fine operators if they did not report breaches of their engineering obligations more quickly.
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