Ofgem Considers Energy Market Collusionn

Ofgem, the UK’s energy watchdog, is looking closely at allegations of cartel-like behaviour by the country’s top six gas and electricity suppliers.
Ofgem has written to Britain’s Energy Retail Association (ERA) to ensure that illicit price fixing is not happening at meetings of the industry lobby group.
This follows on the heels of a statement by Ofgem last week that it believed that the British gas and power market is competitive and is functioning properly.
However, a spokesman acknowledged that the group was still seeking “categoric assurances” that the ERA is not being used to discuss pricing issues.  Over the past month, there have been allegations that its members, including British Gas, npower, EDF, ScottishPower, E.ON and Scottish and Southern Energy, were cooperating to overcharge consumers.
A spokesman for Ofgem commented: “We have no evidence of anti-competitive behaviour, but it is our duty as an industry regulator to look at these allegations carefully.
“If anybody has any proof of such behaviour, they should approach us immediately.”
He added that Ofgem had the power to initiate a formal investigation.  This includes actions such as dawn raids on companies, and imposing fines of up to 10 per cent of global turnover on any company found guilty of market abuse.
The association been called upon to provide minutes for its meetings, which are held every two months.  The association states that they discuss policy and issues of common concern.

www.ofgem.gov.uk