The Competition and Markets Authority (CMA) has published an issues statement as part of its investigation into the GB energy market.
The issues statement sets out the scope of the investigation. It outlines initial theories on what might be adversely affecting competition and what the resulting effects could be for customers but does not imply that the Investigation Group has yet identified any competition concerns. These are intended as topics for investigation and are not views, let alone findings or conclusions. The purpose is to help those submitting evidence to focus on the issues that will be investigated and to also seek views on whether these issues have been identified correctly.
Roger Witcomb, chair of the Energy Market Investigation Group, said: “Given the importance of energy supply to households, businesses and the economy, we very much encourage submissions on the issues we have identified and whether these cover the areas we need to investigate.
“We are looking to identify the underlying causes, at both wholesale and retail level, which could be leading to the widespread concerns that have surrounded this market in recent years – including rising energy bills, service quality, profitability and uncertainty over future investment.
“This is a market which is very complex so it is important at an early stage to focus the investigation on the most relevant issues.”
Ofgem announced its decision to refer last month and the CMA is now carrying out its own comprehensive, independent investigation to see if there are any features of this market which prevent, restrict or distort competition and, if so, what action might be taken to remedy them. (For more information on market investigation references see the CMA’s market investigation note (PDF, 92.4KB, 2 pages) ).
The CMA is required to publish its final report by 25 December 2015 and has set out a timetable setting out a schedule for the various stages of the investigation. The CMA has also now appointed independent panel members to the Investigation Group. The appointed Investigation Group act as the decision makers and have been chosen from the CMA’s panel members, who come from a variety of backgrounds, including economics, law, accountancy and business.
All information relating to the investigation will be available on the energy market case page. Submissions in response to the issues statement are invited in writing by 14 August 2014 either by e-mail toenergymarket@cma.gsi.gov.uk or to: Project Manager, Energy market investigation, Competition and Markets Authority, Victoria House, Southampton Row, London, WC1A 4AD.
