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UK: CMA agrees to Big Six energy probe

 |  July 24, 2014

On the recommendation of energy watchdog Ofgem, the Competition and Markets Authority announced it will conduct an investigation of the energy industry and examine whether the so-called Big Six leading electricity companies are abusing their market power.

According to reports, the CMA will publish its findings by the end of next year, though the investigation will only focus on household and small business bills.

Ofgem referred the matter to the CMA last month after allegations rose that the largest energy companies were using their market dominance to hike prices.

Political implications for the industry are significant, as the opposition Labour Party has vowed to freeze prices for two years should it win in the upcoming elections next May.

Some experts believe that the investigation is merely a tactic to reduce criticism of government handling of the matter, noting that forced divestitures of assets by the Big Six are unlikely.

Full content: Bloomberg

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