The Gas and Electricity Markets Authority ("the Authority") has confirmed its decision to impose a financial penalty on Electricity North West (ENW) for its failure to comply with standard licence condition 4D and standard licence condition 12 of its electricity distribution licence with respect to offers for connection.
Under SLC 4D (Requirement to Offer Terms for Use of System and Connection), ENW was obliged to provide offers for connection as soon as practicable, and in any event within three months of receipt of an application which contained all such information as ENW may have reasonably required for the purpose of formulating the terms of the offer.
Since 1 June 2008 the obligations in SLC 4D have been set out in SLC 12 (Requirement to Offer Terms for Use of System and Connection). SLC 12 requires ENW to provide offers for connection as soon as reasonably practicable, and in any event within three months of receipt of an application which contains all such information as ENW may reasonably require for the purpose of formulating the terms of the offer.
Ofgem’s investigation concerned applications and offers for connections made from 1 April 2007. During this time, ENW has accepted that there were 22 breaches of SLC 4D and six breaches of SLC 12. The Authority is satisfied that ENW contravened SLC 4D and SLC 12.
The Authority considered it appropriate to impose a financial penalty for these contraventions. The Authority decided to impose a financial penalty of £100,000 on ENW.
Further details can be found in the final penalty notice.