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UK: Energy supplier freezes prices amid Big Six probe talk

By  |  March 27, 2014

Energy firm SSE announced plans to freeze its prices and to separate its wholesale and retail operations following outcries over spiking electricity costs charged by the Big Six energy utilities. SSE’s announcement coincides with UK energy watchdog Ofgem’s own notice that it has approached the new competition authority, the Competition and Markets Authority, to probe the industry.

Reports say the CMA’s market inquiry threatens a breakup of the Big Six. But some critics say the probe could cause disruptions in the industry for 18 months and create uncertainty among investors.

But consumer watchdogs have called upon authorities to look into increasing energy costs; reports say the top six energy suppliers control about 95 percent of the UK market.

According to the UK’s Secretary of State for Energy Ed Davey, SSE’s decision to freeze prices is a step in the right direction and “shows that the Big Six are starting to realize they need to take big action if they want to keep their customers.”

Full Content: Reuters

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