Ofgem investigates Electricity North West

ENERGY regulator Ofgem has launched an investigation into the Warrington-based electricity distribution company Electricity North West Limited (ENW).

Ofgem’s investigation hinges on allegations that ENW has abused its dominant market position to shut out competition.

In a statement it said it was investigating the terms imposed by ENW on independent networks connecting to ENW’s pre-exisitng network.

ENW, formerly United Utilities Electricity, operates and maintains the electricity distribution network in the North West. It was sold by United Utilities in 2007 for £1.7bn.

Ofgem said it would give an update on the investigation in nine months’ time. If it finds there has been an infringement it can impose a maximum penalty of 10% of a company’s global turnover.

In the year to March 2008 ENW had revenues of £325.9m, meaning it could face a fine of up to £32.5m.

The company was unavailable for comment. Ofgem’s investigation is under section 18 of the Competition Act 1998.