Competition inquiry into energy companies should also investigate wholesale gas market, warns MP
Tim Yeo, chairman of the House of Commons’ Energy Committee, has written to the Competition and Markets Authority (CMA) urging it to investigate the wholesale gas market as part of an inquiry into the UK energy sector.
In June, energy regulator Ofgem announced an 18-month investigation into competition in the energy market, particularly relating to the ‘big six’ energy companies. The CMA will run the inquiry to try and rebuild customer confidence and trust in the energy sector.
But Yeo has now told the CMA that it must reconsider its decision not to investigate the wholesale gas market, as this is the only way to restore trust from customers.
“I am surprised that the CMA has suggested that it is ‘not minded to investigate’ the wholesale gas market and I am writing to urge it to reconsider,” wrote Yeo.
In the letter, Yeo says the gas market is an essential component of the UK energy system and is expected to continue playing a “major part” in years to come. He writes that the competition inquiry would be “compromised” if it did not take the wholesale gas market into account.
“It is my view, in light of this, that the CMA competition inquiry would be compromised from the outset if it did not address the dominant wholesale market affecting energy prices in the UK,” he said.
The CMA has said they will respond directly to Yeo.
Customer confidence in the ‘big six’ is now at an all-time low. Figures from consumer group Which? recently found complaints reached a record high in June, with large numbers of customers flocking to smaller energy companies such as Good Energy and Ecotricity.
Last month, a report from ResPublica noted how the UK could learn from Germany’s energy framework. It said there are too many restrictions to stop smaller energy companies from entering the UK market and suggested locally governed infrastructure would help create more choice, leading to more transparency and competition.
Photo: sunshinecity via Flickr
Take our 2014 reader survey and you could win an iPad, Kindle or donation to a charity of your choice.
Ofgem calls for wide-ranging competition inquiry into energy market
Complaints to ‘big six’ energy companies hit record high
Unhappy ‘big six’ customers flock to Good Energy, whose profits see sharp rise
More support for Germany’s renewable energy sector as new law gets go-ahead
Centrica questions Ofgem’s profits claim as British Gas half-year takings fall
Like our Facebook Page
How Cities In Canada Are Addressing Climate Change
10 Tax Incentives for Businesses That are Lowering their Carbon Footprint
How to Manage Anxieties About Climate Change
Green Brands Must Understand Their Customers to Market Wisely
Key Necessities for Starting an Eco-Friendly Freelance Business
6 Ways To Overcome Cash Flow Challenges as a Green Business
Going Cashless Lowers Our Carbon Footprint and Has Other Pros and Cons
How to Be as Eco-Friendly as Possible on a Trip to New York
Why Brazed Plate Heat Exchangers Are Eco-Friendly
6 Steps For Making Crypto & Blockchain Eco-Friendly
The Environmental Impact of Software Sprawl and SaaS
How To Use Solar Power Sustainably At Home
Building a Career in Green Construction: Tips and Insights
Solar-Powered Security Systems: Protecting Your Home and the Environment
Top 5 Benefits of Workplace Sustainability
The Role of Smart Technology in Managing EV Charging Stations
4 USA Vacation Destinations for an Eco-Friendly Trip
Why Internet Faxing Is A Sustainable Business Move
5 Ways Eco-Friendly Employers Can Boost Efficiency
Managing Your Clinical Research Workload to Be Eco-Friendlier
- Environment3 months ago
6 Home Improvements You Can Make to Help the Environment
- Environment10 months ago
4 Countries That Have Banned Single-Use Plastic
- Features9 months ago
5 Huge Support Tips for Eco-friendly eCommerce Brands
- Environment7 months ago
How to Ensure Your Home’s Eco-Friendly During Construction?