UK: CMA rejects call for energy break-up

According to The Sunday Times The Competition ad Markets Authority (CMA) is expected to this week say it will not force the Big Six energy firms to break-up.

The CMA is expected to say that the vertical integration structure under which the Big Six operate does not result in higher prices.

Presenting its provisional recommendations following its lengthy review into competition in the industry, the CMA is thought to be more likely to target regulator Ofgem and accuse it of restricting competition, the Sunday Times reported.

The organisation is expected to encourage consumers to switch suppliers and could also see it loosen the regulations around doorstep selling, potentially allow companies to offer more than just four tariffs, and possibly re-introduce regional pricing or cash-back offers.

The announcement follows a year-long review that resulted from a significant increase in energy bills. The final, binding report is due at the end of the year.

The Big Six companies are British Gas, Scottish Power, EDF Energy, SSE, Eon and RWE Npower.

Full content: The Sunday Times

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