ENERGY firm SSE is facing an investigation by Ofgem over concerns it restricted competition in the electricity connections market.

The regulator has launched a probe over the way in which housing developments and other sites not yet connected to the grid choose where they get their power from, which can include a local distribution company or an alternative provider.

Ofgem said it wanted to increase competition in that market but had found evidence SSE possibly breached competition law.

It will investigate whether the company put rivals at a disadvantage.

An SSE spokesman said: "We acknowledge Ofgem's announcement and will co-operate with the investigating authorities.

"We will not make any further comment until the investigation is completed."

Ofgem's announcement came as SSE's rivals Eon British Gas and Scottish Power revealed they were cutting tariffs after falls in wholesale energy prices.