Liverpool Waters residential developer Romal Capital complains to energy regulator Ofgem as it escalates its dispute with site owner Peel over the supply of electricity to its developments. Tony McDonough reports

Liverpool Waters residential developer Romal Capital is escalating a dispute in which it claims it has been unable to agree “fair and transparent” electricity connection charges for its developments.

Romal has already completed one development at Central Docks in Liverpool Waters, comprising 372 apartments. It is currently on site at another scheme which will add a further 195 apartments.

In July 2024 Romal told LBN it was unhappy with what it claimed were unacceptably high costs for connecting utilities to its projects, which are worth in excess of £100m.

Now it has stepped up the dispute by lodging a formal complaint with energy regulator Ofgem. Romal chief executive Greg Malouf says he is exasperated by what he claims are unjustified delays and excessive costs.

“We are committed to delivering high-quality homes that contribute to Liverpool’s regeneration,” he said.

“However, instead of fair and transparent access to essential infrastructure, we have faced unjustified delays, excessive costs, and a campaign to undermine our progress.”

Romal’s complaint to Ofgem names Ancala Essential Growth Infrastructure Fund LP and its affiliates, Peel Holdings and Peel L&P Developments.

It is citing breaches of LENL (Leep Electricity Networks), an affiliate company of Ancala and Peel, and its distribution licence and abuse of a dominant market position under the Competition Act 1998.

The developer initially sought connection costs from LENL in August 2023, only to find negotiations taken over by PEEL.

Key issues outlined in Romal’s complaint include:

• LENL’s failure to publish its connection charging statement online, in breach of licence conditions.
• LENL’s (and Peel’s) “excessive and unexplained” connection charges—quoted at £695,325 plus VAT compared to £11,744.39 for the same work by Scottish Power Electricity Networks.
• PEEL’s interference in LENL’s electricity distribution business, despite lacking a valid licence.
• Attempts to block access to publicly owned land and unfounded technical complaints against SPEN’s work.

Mr Malouf is urging Ofgem to investigate and take “appropriate action to uphold competition and fairness in the electricity connections market”.

He added: “This is not just about our development. It’s about ensuring fair competition and a level playing field for all developers who contribute to the region’s growth.

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“We are cooperating fully with Ofgem’s investigation and are pleased with its commitment to uphold the integrity of the regulatory framework.”

In a statement, LENL told LBN: “We are confident that all the actions we have taken in this case have been appropriate and in line with relevant regulations. Leep Utilities will cooperate with the relevant parties to help resolve this case.”

A spokesperson for Peel said: “Peel Waters will happily work with Ofgem to review this claim.”