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Energy regulator Ofgem is to launch an investigation into Scottish & Southern Energy and Scottish Power following reports of capacity constraints in the transmission network.
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In a statement, Ofgem said the investigation will be carried out under the Competition Act, which "prohibits the abuse of a dominant position in a market". Its decision was based on a formal complaint, and is separate from the probe into rising energy prices launched in February.
Scottish & Southern shares fell 1 per cent on the news, but Ofgem is saying little else about the scope of the probe. All other things being equal, we still rate S&SE shares good value at 1,414p. Scottish Power is no longer a quoted company following its takeover by Spain's Iberdrola.
Last IC View: Good Value (1,431p, 11 Mar 2008)
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-IC-1.5.4a-prod - 31/10/2008 13:11:34 - carlos.princz
