SSE share price: Subsidiary fined £750,000 by Ofgem

on May 31, 2014
Updated: Apr 9, 2020
Listen

iNVEZZ.com, Saturday, May 31: A subsidiary of SSE Plc (LON:SSE) was fined £750,000 by the UK energy regulator Ofgem yesterday for missing deadlines to connect customers to electricity networks. The penalty marks the second time the unit has faced punishment for the same offence.

SSE’s share price was little changed in London trading yesterday, closing 0.19 percent higher at 1,556p.

Are you looking for signals & alerts from pro-traders? Sign-up to Invezz Signals™ for FREE. Takes 2 mins.

**SSE subsidiary fined**
Ofgem announced yesterday in a statement that it had found that Scottish and Southern Energy Power Distribution (SSEPD), a subsidiary of Perth-based SSE, had been “too slow” in providing connection offers to certain customers.

During routine monitoring, the energy regulator found that between August 2010 and September 2013, SSEPD did not meet the deadline to make a connection offer to 200 customers. Ofgem explained in the statement that as part of their licence conditions, electricity distribution companies have a maximum of three months to make connection offers to customers and must have the appropriate resources in place to deliver the work.

The company was ordered to pay £750,000 to the Scottish Hydro Electric Community Trust, an organisation which helps customers in rural areas struggling to pay for an electricity connection.
The Times quoted SSE as blaming a “technical system error” and insisting that “no customer was impacted negatively” with the properties being unoccupied at the time.

Yesterday’s penalty, however, is the second time in three years that Ofgem has ruled that the energy company has breached the same rule. In 2011, SSEPD was fined £500,000 for violations of the same licence conditions. At the time, the utility promised to put in place new systems to prevent a repeat.


“Today’s higher payment takes into account the failure to fully rectify the 2011 breach and the subsequent repeat of the same breach,” Ofgem explained in the statement.
**Analysts on SSE**
The 16 analysts offering 12 month price targets for SSE for the Financial Times have a median target of 1,373.72p, with a high estimate of 1,735p and a low estimate of 1,176.72p. As of May 23, the consensus forecast amongst 36 polled investment analysts covering the stock advises investors to hold their position in the FTSE 100 electricity provider.
SSE unveiled its full-year results earlier this month, posting a 9.6 percent increase in adjusted profit before tax. (SSE share price: Full-year profit rises 9.6 percent) The group, however, posted operating profit of £292 million for its retail business, down 28.6 percent year-on-year, reflecting a mild winter.
**On May 30, buy SSE shares at 1,558.00p.**
**On May 30, sell SSE shares at 1,556.00p.**

Ad

Want easy-to-follow crypto, forex & stock trading signals? Make trading simple by copying our team of pro-traders. Consistent results. Sign-up today at Invezz Signals™.

0/10
Learn more
Energy & Power Services Stock Market