SSEZY SSE PLC (PK)

By Razak Musah Baba

LONDON--The U.K antitrust body Friday concluded its energy market investigation setting out a range of reforms to modernize the market for the benefit of customers.

The Competition and Markets Authority said 30 measures will help drive down costs by increasing competition between suppliers and helping more customers switch to better deals, while protecting those less able to benefit from competition.

As part of the investigation, the CMA said it has found that 70% of domestic customers of the six largest energy firms are still on an expensive 'default' standard variable tariff.

The 'big six' energy firms are Centrica PLC (CNA.LN), owner of British Gas, RWE AG (RWE) which owns RWE npower, SSE PLC (SSE.LN), E.ON SE (EOAN), EDF Energy and Iberdrola (IBE), which own Scottish Power.

The CMA said it has found that in aggregate customers have been paying GBP1.4 billion a year more than they would in a fully competitive market.

"Competition is working well for some customers in this market - but nowhere near enough of them. Our measures will help more customers get a better deal and put in place a modernized energy market equipped for the future," said Roger Witcomb who led the energy market investigation.

The CMA is set to send orders and recommendations to the U.K energy regulator Ofgem and government, while it will shortly publish a timetable setting out this remedies implementation process over the next six months.

The CMA said Ofgem will also be given much greater influence over the working of the market and more powers to enable it to scrutinize prices and suppliers as well as the impact of policy.

-Write to Razak Musah Baba at razak.baba@wsj.com; Twitter: @Raztweet

(END) Dow Jones Newswires

June 24, 2016 03:12 ET (07:12 GMT)

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