OFGEM launches energy sector investigation

United Kingdom

OFGEM has launched an investigation into the electricity and gas supply markets in the UK for households and small businesses. This is in response to public concern about energy prices.

OFGEM is concerned about the increased volatility of wholesale prices and wants to investigate how European and other global energy market developments are affecting energy bills in Britain. It will carry out its investigation using powers under the Enterprise Act 2002 which allow it access to detailed information from energy companies.

OFGEM has a range of powers available should it find that there is an adverse effect on competition from any feature(s) of the markets investigated. These include action under company licences, the Competition Act, or referral of the whole market to the Competition Commission. It has stated that initial findings from the probe will be published before the end of September 2007.

Please click here for OFGEM’s press release on this investigation.