SSEZY SSE PLC (PK)

By Adam Clark

SSE PLC (SSE.LN) said Friday that it welcomes the U.K. Competition & Markets Authority's intention to recommend regulation of heat networks.

The CMA said in a statement on Thursday that it has come to a provisional view that the heat-network sector should be regulated. Heat networks, also known as district heating, distribute heating to buildings from a central source.

The CMA said regulation will mean the introduction of consumer protections, mandatory rules for suppliers on price and quality, steps to improve network design, and measures to improve transparency.

Currently there is no U.K. regulator with responsibility for heat networks. The CMA said customers should receive equivalent protection to gas and electricity customers. There are currently around 14,000 heat networks in the U.K. providing around 2% of the country's building heating demand, said the CMA.

The CMA said it will consult on its recommendation of regulation until the end of May, before publishing a final report in the summer. The regulator said it is working with the U.K., Scottish, and Welsh governments to develop its recommendations.

SSE said it looks forward to "working constructively" with the CMA over heat networks, which the power company said present an opportunity for lower-cost, low carbon heat.

Write to Adam Clark at adam.clark@dowjones.com; @AdamDowJones

(END) Dow Jones Newswires

May 11, 2018 09:17 ET (13:17 GMT)

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