Developer calls for Ofgem to act in row over Liverpool Waters power connection charges

A residential developer has called on energy watchdog, Ofgem, to investigate Peel Holdings over a row at the £5.5bn Liverpool Waters scheme.

Romal Capital has planning permission for a 372-apartment scheme at the former docks.

It has cried foul over energy infrastructure charges to connect its development which it claims are unreasonable.

It has formally lodged a complaint with Ofgem against Ancala Essential Growth Infrastructure Fund LP and its affiliates, Peel Holdings and Peel L&P Developments, citing breaches of LENL (Leep Electricity Networks Limited), an affiliate company of Ancala and Peel, and its distribution licence and abuse of a dominant market position under the Competition Act 1998.

The complaint follows a series of challenges Romal Capital says it has faced in securing fair and transparent electricity connection charges for its Central Docks development.

Despite being the only residential developer with planning permission at Liverpool Waters, with 372 apartments completed and a further 195 under construction, Romal Capital says it has encountered obstruction and excessive connection charges imposed by LENL and Peel.

The developer initially sought connection costs from LENL in August 2023, but said negotiations were taken over by Peel, despite its lack of a distribution licence.

Greg Malouf, Romal Capital CEO, said: “We are committed to delivering high quality homes that contribute to Liverpool’s regeneration.

“However, instead of fair and transparent access to essential infrastructure, we have faced unjustified delays, excessive costs, and a campaign to undermine our progress.”

Romal says key issues outlined in its complaint include:

• LENL’s failure to publish its Connection Charging Statement online, in breach of licence conditions.
• LENL’s (& Peel’s) excessive and unexplained connection charges – quoted at £695,325 plus VAT compared with £11,744.39 for the same work by Scottish Power Electricity Networks (SPEN).
• Peel’s interference in LENL’s electricity distribution business, despite lacking a valid licence.
• Attempts to block access to publicly-owned land and unfounded technical complaints against SPEN’s work.

Romal said, given the vital role Liverpool Waters plays in the city’s economic future, it is urging Ofgem to investigate these alleged breaches and take appropriate action to uphold competition and fairness in the electricity connections market.

Malouf added: “This is not just about our development; it’s about ensuring fair competition and a level playing field for all developers who contribute to the region’s growth.

“We are cooperating fully with Ofgem’s investigation and are pleased with its commitment to uphold the integrity of the regulatory framework.”

A Peel spokesperson said: “Peel Waters will happily work with Ofgem to review this claim.”

A spokesperson for Leep Utilities, said: “We are confident that all the actions we have taken in this case have been appropriate and in line with relevant regulations. Leep Utilities will cooperate with the relevant parties to help resolve this case.”