Investigation into Scottish Hydro Electric Power Distribution's compliance with SLC 4D, SLC 12 and SLC 30 of its electricity distribution licence
Investigation
- Open
- Decision proposed
- Closed
- Publication date
- Closed date
- Decision
The Gas and Electricity Markets Authority ("the Authority") has confirmed its decision to impose a financial penalty on Scottish Hydro Electric Power Distribution (SHEPD) for its failure to comply with its licence obligations under its electricity distribution licence, specifically standard licence condition 4D, standard licence condition 12 and standard licence condition 30.
The obligation on licensees in SLC 4D and SLC 12 is to provide offers for connection as soon as practicable/reasonably practicable and in any event within three months of receipt of an application which contains all such information as the licensee may reasonably require for the purposes of formulating the offer. SLC 30 requires a licensee to have available to itself such "resources, including management and financial resources as will enable it to comply in all respects with its obligations under this licence".
Our investigation concerned applications and offers for connection made from 1 July 2004 to 15 July 2009, and the monitoring systems that were in place to ensure compliance with the obligations regarding connection offers. During this period SHEPD received 48,593 enquiries regarding connection applications.
The Authority found that:
- SHEPD did not have appropriate monitoring systems in place to enable it to comply with its obligations under the electricity distribution licence, in breach of SLC 30;
- There have been 18 cases where SHEPD has breached the three month timeframe required in SLC 12; and
- There have been six cases where SHEPD has breached the three month timeframe required in SLC 4D.
The Authority considered it appropriate to impose a financial penalty for these contraventions. The Authority decided to impose a financial penalty of £500,000 on SHEPD.
Further details can be found in the final penalty notice.