Ofgem orders SSE, Scottish Power, Centrica, RWE Npower, E.On and EDF Energy to face competition enquiry
Energy industry regulator Ofgem has ordered the Competition and Markets Authority (CMA) to investigate Britain’s ‘big six’ energy suppliers - SSE, Scottish Power, Centrica, RWE Npower, E.On and EDF Energy – over whether they are blocking effective competition.
The 18 month investigation follows concerns that the half-dozen firms are not competing aggressively with each other, despite accounting for around 95 per cent of the total UK energy supply market between them.
A three-month report by Ofgem found ‘possible tacit co-ordination’ on the size and timing of price rises, prompting a more in-depth investigation.
Dermot Nolan, Ofgem chief executive, said: "The CMA has powers, not available to Ofgem, to address any structural barriers that would undermine competition.Now consumers are protected by our simpler, clearer and fairer reforms, we think a market investigation is in their long-term interests."
Should the CMA find evidence of wrongdoing they have the power to order the break-up of some, or all, of the ‘big six’.