CMA update

The CMA’s Provisional Decision on Remedies for the UK energy market was published on 11 March 2016.

We welcomed the CMA’s review as an opportunity to focus on competition and innovation in the energy market.  The investigation has been broad in scope and comprehensive in the issues it has considered and many of the findings have confirmed that energy markets are, in the main, functioning well.  In particular, that competition in wholesale electricity and gas markets is generally effective, and that vertical integration can create efficiencies that benefit consumers.

While we have concerns about some of the findings and proposals for the micro business sector, we are broadly supportive of those remedies proposed by the CMA that seek to promote more effective competition.  In particular, we welcome the provisional decision to prohibit termination fees and ‘no exit’ clauses in auto-rollover contracts, and note that we have already ended this practice.  We also support the CMA’s view that the intended Ofgem Code of Practice (CoP) for Third Party Intermediaries (TPIs) will help promote transparency and competition in this important part of the sector. However, we believe the CMA should recommend that Ofgem implement the CoP as soon as possible and that it contains minimum requirements on transparency.

The CMA is expected to publish its Final Report in June and we look forward to engaging with them in the final phase of this process.

To view our response to the CMA’s Provisional Decision on Remedies click here

For more information about the CMA click here

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