Energy UK response to Ofgem’s consultation on a possible referral to the Competition and Markets Authority
Energy UK urges that any CMA referral should be an opportunity to open up the debate with the public, address the many domestic customer issues, and bring forward serious impact studies of policies. This is especially important considering the current climate where the huge complexity of the electricity market is failing to be understood.
The industry knows it has to change. It is changing and is honest enough to say this publicly. We call on others to do likewise. Any referral and enquiry must be brave. It should:
- Separate out the unwarranted allegations from those issues which need to be examined further;
- Be clear about what are the responsibilities of the companies, what is attributable to wholesale markets, what are the policy costs, what are the pass-throughs and the role of tax;
- Shine a light on what are 'profits' and what is required as an investment return;
- Give confidence to investors so that any enquiry does not cause uncertainty that results in a hiatus;
- Manage public expectations of what they can anticipate from any outcome;
- Good competition does not necessarily mean that prices fall, when so much of the bill in the hand of others"
In responding to Ofgem, Energy UK is also providing some research undertaken by Cornwall Energy on competition indicators, an Ipsos MORI report that drills down into trust and service issues and a study that highlights what is being traded and what price, in the wholesale electricity market.
Notes to editors
- To read Energy UK’s full response to Ofgem’s consultation on a CMA referral, visit our website.
- To see the Ipsos MORI report, commissioned by Energy UK, on consumer experiences of the energy market, also visit our website
- You can view Ofgem’s proposal to make a referral to the CMA on their website
- The Cornwall Report into competition in British household energy supply markets
- You can view the most recent Wholesale Market Report on Energy UK’s website