SSE : UK's Ofgem investigates SSE's power connections

LONDON (Reuters) - British energy regulator Ofgem has launched an investigation into whether utility SSE has acted uncompetitively in the electricity connections market, a probe that could result in the company being fined up to 10 percent of annual turnover.

"Ofgem has used its competition powers to open an investigation into whether SSE put its competitors at a disadvantage in the electricity connections market," it said in a statement.

The watchdog's actions follow a review of the 500 million pound market for connecting customers to the electricity grid.

SSE said it will cooperate fully with the authorities.

Shares in the energy company fell 0.5 percent on Wednesday morning to 1,497 pence.

"This investigation is obviously at an early stage, but it is not helpful," said Whitman Howard analyst Angelos Anastasiou.

Britain's energy supply sector, which includes SSE, is also being probed by Britain's competition authority.

Last year, SSE was also investigated for poor performance during storms that left millions of Britons without electricity.

(Reporting by Karolin Schaps; editing by Jason Neely and David Evans)