UK Competition and Markets Authority Proposes Energy Price Controls, More Competition -- Update

(Rewrites throughout, adds Centrica and SSE responses)

By Rory Gallivan

LONDON--The U.K.'s Competition and Markets Authority on Thursday announced a series of proposals to help customers cut their energy bills, including price controls for customers on prepayment meters.

The CMA said U.K.customers could be paying an extra 1.7 billion pounds ($2.4 billion) in energy bills due to a lack of competition in the market and proposed creating a database to help rival suppliers market to consumers.

The proposals may require legislation to be implemented, the CMA said.

"We have found that the six largest suppliers have learned to take many of their existing domestic customers--some 70% of whom are on "default" standard variable tariffs--for granted, not just over prices, but with their service and quality," said Roger Witcomb, who chaired the CMA's investigation into the matter.

"We're proposing a wide range of bold, innovative measures to enable competition to grow further across the market so that millions more households will benefit," he added.

The CMA said it will publish a final report on the matter in June following a consultation.

Centrica PLC (CNA.LN), which owns British Gas, one of the "big six" U.K. energy suppliers, said it disagrees with the CMA's finding that consumers are overpaying by GBP1.7 billion a year.

"We will work through the full report once we have it and submit a formal response in line with the required timetable," it said.

Fellow big six supplier SSE PLC (SSE.LN) said it is assessing the details of the proposals.

"We will welcome remedies that benefit customers, work in practice and can be implemented pragmatically in this dynamic and changing retail market which is undergoing significant modernisation," it added.

-Write to Rory Gallivan at rory.gallivan@wsj.com; Twitter: @RoryGallivan

(END) Dow Jones Newswires

March 10, 2016 04:48 ET (09:48 GMT)

SSE (PK) (USOTC:SSEZY)
Historical Stock Chart
From Jun 2024 to Jul 2024