UK: Ofgem on the defense in energy pricing debate

Immediately after energy watchdog Ofgem was blamed by former energy executives for playing a part in rising energy costs, the watchdog is on the defense.

Former energy regulators filed a letter to the Competition and Markets Authority, which is now investigating the energy market at the recommendation of Ofgem, advising the CMA to examine the role that Ofgem played in lessening energy competition and rising energy costs. The former executives argue that Ofgem reduced the number of deals on offer, causing customers to decline to switch energy providers.

But in a statement, Ofgem argued that “many of the current problems with retail competition in the energy market were showing before 2008 and the regulatory and policy environment has changed significantly since then.”

The former regulators had raised additional concerns with the CMA that the regulator’s findings of the energy industry were largely based on Ofgem papers, and therefore could be biased. The CMA has lodged an in-depth robe of the industry that will last for 18 months.

Full content: Sky.com

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.