Update - 26 June 2014
Following this joint assessment of competition in the energy market, on 26 June 2014 Ofgem referred the GB energy market to the CMA for investigation. Please see the energy market investigation case page for more information.
Update - 27 March 2014
A joint assessment of competition in the energy market, published by Ofgem, the Office of Fair Trading and the Competition and Markets Authority (CMA) has found competition in retail energy markets may not be achieving good outcomes for all consumers and small businesses.
The assessment identified weak competition between larger energy suppliers, low customer trust and engagement, and barriers to entry and expansion.
The publication follows detailed analysis conducted according to a framework published by the 3 organisations in December 2013. It was also informed by meetings with a wide range of industry players, consumer groups and other interested parties.
The CMA notes the provisional decision by Ofgem to make a market investigation reference (MIR) into the energy sector as a result, and will await the outcome of its consultation.
Should Ofgem decide, following this consultation, that an MIR is appropriate, a Group of independent Panel Members would conduct a more detailed inquiry. Read How MIRs are conducted (PDF, 26.8KB, 1 page)
The Government has announced that Ofgem would work with the Office of Fair Trading (OFT)/Competition and Markets Authority (CMA) as appropriate, to carry out a market assessment in order to monitor the behaviour of market participants and ensure the market is working for residential and small business consumers and that all suppliers can compete fairly.
In response, the Chief Executives of these three organisations have written to the Secretary of State providing further detail on the assessment. The letter is set out below. We intend to publish an assessment framework in December 2013, followed by a first assessment by the end of March 2014.
Ofgem, the Office of Fair Trading (OFT) and the Competition and Markets Authority (CMA) have today (19 December) announced a framework for how they will assess competition in the energy market, looking at both the domestic and small business markets.
Sue Aspinall firstname.lastname@example.org
Ed Smith email@example.com
Senior responsible officer
Nisha Arora firstname.lastname@example.org