Scottish Power argues Ofgem Spending Cuts
Energy supplier Scottish Power has threatened to take Ofgem, the UK’s gas and electricity regulator, to the Competition Commission – an independent public body ensuring healthy competition between companies in the UK – over its proposed spending cuts, sparking tension over how to finance the multi-billion-pound overhaul of Britain’s electricity networks.
Ofgem issued a draft spending and revenue programme to the electricity companies, fixing their investment for 2010-15 to £6.5 billion – which is 17% less than the suppliers requested, while Ofgem did not reduce its own requirement for improvements to the networks.
Energy bosses are not happy with the proposals, saying they are being asked to shoulder the responsibility for many of the government’s ambitious plans to create a low-carbon future but to do it on the cheap.
Alistair Buchanan, chief executive of Ofgem, will meet with energy bosses over the next few weeks where they will their make their final pitches for a better deal for 2010-15 before the regulator’s final decision due in December.
Chief executive of Scottish Power, Nick Horler stated that he is prepared to take the unprecedented step of going to the Competition Commission unless Ofgem changes its mind.
Source;
Business.timesonline.co.uk/ Business/ Industry Sectors (Scottish Power at war with Ofgem)