Energy regulator Ofgem announced plans to open up the market for electricity connections yesterday. The proposals follow consultation originally prompted by complaints from customers and potential competitors about high prices and poor service provided by public electricity suppliers or PESs.

Ofgem Director General, Callum McCarthy, said: "This is a further extension of competition in an area from which it has been lacking. It will deal with a series of problems which have caused widespread complaints."

Connections are defined as new and replacement cables and associated infrastructure such as transformers which are connected to existing networks. Ofgem’s proposals include:

• PESs to stop defining the majority of work in making connections as 'non-contestable', i.e. work that can only be carried out by the PES. This move will allow third party contractors to compete for connections business on a level playing field for the first time.
  
  
• PESs to retain some necessary 'non-contestable' work but this will be restricted to as few elements as possible.
  
  
• a nationwide registration scheme to be established which is recognised by all PESs to give them confidence that third party work is carried out competently.
  
  
• PESs to provide information about their own businesses in a timely and accurate manner to customers and competitors - a requirement consistent with similar policies in the gas industry which have led to considerable penetration by alternative connections providers into existing monopoly business.

Richard Byatt