UK: Critics say energy price probe could do more harm than good

As industry watchdogs and consumers call for changes in energy costs, reports say an investigation into alleged price coordination could actually undermine the value of one of the world’s top energy markets.

According to some industry experts, regulators’ market inquiry and new rules that will allow more government intervention undermine the UK’s liberalization of the energy industry that first began nearly three decades ago.

According to one industry expert, Raphael Boroumand of Paris Dauphine University, the worst case scenario would see a breakup of the top utilities if regulators find evidence of anticompetitive behavior.

Such a breakup, he said, would force companies to divest assets. That situation would cause the value of the industry to plummet.

But consumer advocates are slamming the so-called Big Six industry leaders for controlling 95 percent of the energy market. The Competition and Markets Authority is in the midst of its probe of the matter.

Full Content: Reuters

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