A joint assessment of competition in the energy market, published by Ofgem, the Office of Fair Trading and the Competition and Markets Authority (CMA) today 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.
Today’s 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
Media enquiries should be directed to Russell Guthrie on 020 7211 8899 or Kasia Reardon.
Notes for Editors
On 1 April 2014, the CMA will become the UK’s lead competition and consumer body. The CMA will bring together the existing competition and certain consumer protection functions of the Office of Fair Trading and the responsibilities of the Competition Commission, as amended by the Enterprise and Regulatory Reform Act 2013. See the CMA’s homepage for more information.