The UK’s energy market regulator Ofgem said on Monday it has launched two investigations into whether SSE Generation Limited, part of Perth-based SSE, and transmission operator EP SHB Limited “have failed to comply with the Transmission Constraint Licence Condition.”

Ofgem said: “The investigation will examine whether both companies failed to comply with the requirements of condition 20A of the Electricity Generation Standard Licence Conditions (referred to as the Transmission Constraint Licence Condition, or TCLC).

“Ofgem’s investigation will centre on whether bid prices the two companies submitted were excessively expensive, including when taking into account both the opportunity costs and avoided costs associated with reductions in generation.

“Ofgem has not to date made any finding that SSE Generation Limited or EP SHB Limited breached the TCLC.

“The opening of this investigation does not imply that Ofgem has made any findings about non-compliance.”