U.K. Watchdog Extends Energy Market Investigation by 6 Months

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 [e-mail]; @IanWalk40289749

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September 21, 2015 05:49 ET (09:49 GMT)

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