London/TXU Europe - Joint Venture decision and principles

United Kingdom

Ofgem has set the conditions on 23rd March for the London/TXU Europe joint venture, announced in December and cleared by the European Commission in February. Ofgem has also published the principles on which it will base consideration of future distribution business combinations. The Joint Venture raises a number of regulatory issues, which will be dealt with through undertakings by both companies.

The principles form a broader framework for considering future combinations of the same type even though Ofgem must consider each case on its own merits. Its primary concerns are to ensure that these combinations deliver benefits to customers.

(Ofgem Press Release R/31)