Big Six to face competition enquiry

adminBusiness Electricity, Business Gas, Utilities Market Regulation

The industry regulator Ofgem has called for an inquiry into “possible tacit co-ordination” of price rises by the Big Six.

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The Competition & Markets Authority’s investigation could mean breaking up the Big Six to allow real competition

The Competition & Markets Authority (CMA) is being called on by Ofgem to perform the investigation over the next 18 months amid fears that the energy market is not competitive, with price variations between suppliers at a minimum.

Suppliers have been seen to raise prices in recent years by around the same amount as winter begins, meaning there are little savings to ever be made by switching between them.

Summary of Winter 2013 price rises

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The findings came in a recent report from Ofgem which concluded the market is not competitive enough.

The Competition & Markets Authority (CMA) is a new body which comes into effect on April 1, and replaces the two previously distinct competition authorities, the Office of Fair Trading (OFT) and the Competition Commission (CC).