Ofgem has today announced it will investigate whether SSE Generation Limited and EP SHB Limited have failed to comply with the Transmission Constraint Licence Condition (TCLC).

The investigations aim to explore whether either of the firms failed to comply with the requirements of condition 20A of the Electricity Generation Standard Licence Conditions.

The regulator will focus on whether bid prices submitted by the two companies were excessively expensive.

Ofgem said that so far has not made any finding that the companies have breached the TCLC and the investigations do not imply any finding of non-compliance.