UK: Ofgem approaches Big Six energy breakup

Energy regulator Ofgem is reportedly on the cusp of requesting a full-scale investigation into the energy industry, moving the watchdog one step closer to initiating the breakup of the so-called Big Six market leaders.

According to local reports, Ofgem’s decision on whether to request a market probe by the Competition and Markets Authority is “imminent.” The investigation would be the largest-ever launched into the energy market, which has received widespread criticism following price hikes and complaints over customers’ inability to switch energy providers.

According to reports, Ofgem believes a full-scale probe into the industry would reveal more about these concerns and possibly allow the CMA to break up the six leading energy companies to boost competition.

Ofgem first announced last March that it intends to refer the matter to the CMA; according to reports, the regulator won’t do so until it reviews responses to a consultation on the matter, which ended last month.

But reports say a market investigation is likely, as Ofgem said earlier this year that it found evidence of “possible tacit coordination” between competing energy firms on the timing and level of price hikes; the regulator did not outright accuse the companies of illegal collusion, however.

According to reports, the Big Six hold 95 percent of the UK market.

Full content: Express and Star

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