Ofgem to investigate SSE, British Gas and Scottish Power

1st May 2013 14:11

SSE, British Gas and Scottish Power are among six energy companies that are to become the subject of an investigation by Ofgem into their failure to reach UK carbon reduction targets. According to the Carbon Emissions Reduction Target legislation introduced at the end of last year, the companies were required to take a series of measures to lower the country's carbon emissions. A second, smaller scheme, known as CESP, required the firms to introduce further measures in the most under-priveleged areas on the UK. Ofgem has said that British Gas and SSE both failed to achieve the levels required, while Scottish Power missed on CESP. British Gas could potentially face a large fine after missing it CESP target by nearly 40%. Sarah Harrison, Ofgem's senior partner in charge of enforcement, said: "At a time of rising energy bills energy efficiency can make a big difference for consumers. The fact that the industry has delivered 99% of its government energy efficiency targets is to be welcomed."However, Ofgem's role is to ensure that consumers do not lose out by the failure of firms to deliver all the help required, or are not disadvantaged by late delivery. This is why Ofgem is today launching investigations into six firms who have failed one or more of their energy efficiency targets set by government."SSE's share price was down 0.13% to 1,555p by 14:40. NR