Power firm boss probed

sion.barry@walesonline.co.uk THE boss of UK Power Networks has come under scrutiny after the firm was forced to order an investigation into a multi-million-pound contract awarded to a company in which his son is a senior director, it can be revealed.

According to documents seen by the Press Association, the company, responsible for providing electricity to south-east England, asked KPMG to carry out a “forensic investigation” after a whistleblower raised concerns over chief executive Basil Scarsella’s family ties.

The probe related to an IT contract, understood to be worth £75m, awarded by UK Power Networks to a firm called Enzen where Mr Scarsella’s son David is business operations director.

The whistleblower alleged that the contract was awarded unfairly, citing conflicts of interest due to the fatherson relationship, and flagged serious problems with the procurement process. The individual also questioned Enzen’s financial stability, the documents show.

While KPMG found that “no evidence of any wrongdoing by UK Power Networks or its employees was identified”, details of the probe are likely to raise serious questions over how consumer’s money is being spent.

UK Power Networks is Britain’s largest distribution network operator and makes its money off the back of consumers’ energy bills. The group raked in £1.7bn in revenue last year and made an operating profit of £1.2bn.

UK Power Networks is owned by CK Infrastructure, which in turn is ultimately controlled by Hong Kong billionaire Li Ka-shing.

Regulator Ofgem has been made aware of KPMG’s probe but is not thought to be taking any further action.