Yesterday Ofgem announced an investigation into competition in the retail energy market in Great Britain in a response to mounting political and media pressure about rising energy bills.
Ofgem has said that it will use its Enterprise Act powers to investigate the position in the residential and small and medium enterprise markets. Ofgem has stated that the investigation will cover:
- a customer's perspective/experience and barriers to switching;
- suppliers' market shares;
- the competitiveness of supplier pricing;
- the relationship between wholesale and retail prices; and
- barriers to entry.
The investigation has been launched despite public statements by Ofgem that Britain's retail energy market is competitive and working well. It will run in parallel with the inquiry into the competitiveness of the UK's energy markets which the House of Commons Select Committee on Business, Enterprise and Regulatory Reform announced earlier this month.
Initial findings of the investigation will be published before the end of September.
Find out more from the Ofgem press release.