U.K. Watchdog Extends Energy Market Investigation by 6 Months
September 21 2015 - 6:04AM
Dow Jones News
By Ian Walker
LONDON--The U.K. Competition and Markets Authority on Monday
extended the timetable for its investigation into the energy market
by six months to allow it to consider responses to its initial
findings in July.
The competition body extended the timetable to June 25, 2016,
but said it aims to deliver its final report well within this time
frame. It plans to publish its provisional decision on remedies in
January, and reach a final decision by the end of April.
"The inquiry group also wants to ensure it has sufficient time
to conclude the further evidence-gathering and analysis required
for the final report and to design any subsequent remedy package so
that it is as comprehensive a solution as reasonable and
practicable to any competition problems identified in the final
report," it said.
On July 7, the CMA highlighted a number of issues in the energy
retail-distribution market that needed attention, but said overall
the wholesale market worked well.
At that time the CMA said a lack of transparency in the retail
market and plans meant to simplify prices weren't having the
desired effect. Duel-fuel customers could save an average of 160
pounds ($249) a year by switching to a cheaper deal, it said.
"Lack of awareness of what deals are available, confusing and
inaccurate bills and the real and perceived difficulties of
changing suppliers all deter switching--and the higher price levels
reflect that suppliers can charge higher prices to these disengaged
customers," the authority said in July.
The CMA, which had conducted a yearlong investigation into the
market, pointed to a lack of transparency that is hampering trust
in the sector.
The U.K. energy regulator asked for a full competition
investigation focused on the country's six biggest utilities,
following months of political wrangling over rising household
energy bills, last June.
The six biggest utilities--Centrica PLC (CNA.LN), SSE PLC
(SSE.LN) and U.K. subsidiaries of RWE AG (RWE.XE), E.ON AG
(EOAN.XE), Iberdrola SA (IBE.MC) and Electricite de France SA
(EDF.FR)--have come under fire for rising bills for gas and
electricity.
Write to Ian Walker at ian.walker@wsj.com; @IanWalk40289749
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
September 21, 2015 05:49 ET (09:49 GMT)
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