A PYMNTS Company

UK: Ex-energy officials blame Ofgem for price spikes

 |  August 10, 2014

Ofgem has referred the UK’s energy industry to the Competition and Market Authority for investigation after finding evidence of anticompetitive practices leading to higher prices for consumers. But now, Ofgem is under scrutiny as former energy officials blame the watchdog itself for the anticompetitive market.

Reports say five former energy regulators have submitted a filing to the CMA claiming that Ofgem may be to blamed for weak competition in the energy sector thanks to poorly designed regulatory plans imposed on the industry since 2008.

The filing was submitted by Stephen Littlechild, Sir Callum McCarthy and others. It will be published Monday, reports say.

The filing also warns the CMA that its investigation of the industry should remain independent of Ofgem, and raised concerns that four of the five main sources cited in the CMA’s statement of issues are all Ofgem publications.

The CMA has launched an 18-month investigation into the industry following Ofgem’s referral. The energy watchdog found that millions of consumers are paying too much for gas and energy thanks to the dominance of only a handful of power conglomerates.

Full content: The Telegraph

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.