Energy market investigation

The CMA investigated the supply and acquisition of energy in Great Britain and has published its final orders and undertakings.

• From: Competition and Markets Authority
• Published: 9 February 2016
• Last updated: 27 February 2018 — See all updates

• Case type: Markets
• Case state: Closed
• Market sector: Energy
• Outcome: Markets - phase 2 adverse effect on competition leading to remedies
• Opened: 26 June 2014
• Closed: 20 December 2016

Government response to the findings

26 February 2018: The Secretary of State for Business Energy and Industrial Strategy, and Minister of State for Energy and Clean Growth have responded on behalf of the government to the energy market investigation findings.

• Government response (27.2.18)

Remedies implementation

Timetable

Statutory deadline for implementing remedial action: 23.12.16

Full remedies implementation timetable (11.7.16)

Contact

Email: [email protected]

Final undertakings

The Energy Market Investigation (Gas Tariff Codes) Undertakings 2016

• Notice of acceptance of final undertakings (20.12.16)
• Summary of parties’ responses to formal consultation (20.12.16)

Final orders

• Press release: CMA finalises help for customers and microbusinesses on expensive deals (14.12.16)

The Energy Market Investigation (Database) Order 2016

• Notice of making an order (14.12.16)
• The Energy Market Investigation (Database) Order 2016 (14.12.16)
• Explanatory note (updated 22.12.16)
  • Domestic customer and microbusiness consumer information (Annex 1 to explanatory note) (Excel) (14.12.16)
  • Correction note (22.12.16)
• Summary of parties’ responses to formal consultation (14.12.16)
• CMA response to the Information Commissioner’s Office’s response to the formal consultation (updated 22.12.16)

The Energy Market Investigation (ECOES/DES) Order 2016

• Letter to Xoserve about compliance with the ECOES/DES Order 2016 (12.6.17)
• Notice of making an order (14.12.16)
• The Energy Market Investigation (ECOES/DES) Order 2016 (14.12.16)
• Explanatory note (14.12.16)
• Summary of parties’ responses to formal consultation (14.12.16)

The Energy Market Investigation (Gas Settlement) Order 2016

• Notice of making an order (14.12.16)
• The Energy Market Investigation (Gas Settlement) Order 2016 (14.12.16)
• Explanatory note (14.12.16)
• Summary of parties’ responses to formal consultation (14.12.16)

The Energy Market Investigation (Microbusinesses) Order 2016

• Notice of making an order (14.12.16)
• The Energy Market Investigation (Microbusinesses) Order 2016 (14.12.16)
• Explanatory note (14.12.16)
• Summary of parties’ responses to formal consultation (14.12.16)

The Energy Market Investigation (Restricted Meters) Order 2016

• Notice of making an order (14.12.16)
• The Energy Market Investigation (Restricted Meters) Order 2016 (14.12.16)
• Explanatory note (14.12.16)
• Summary of parties’ responses to formal consultation (14.12.16)

The Energy Market Investigation (Electricity Transmission Losses) Order 2016

• Notice of making an order (14.12.16)
• The Energy Market Investigation (Electricity Transmission Losses) Order 2016 (14.12.16)
• Explanatory note (14.12.16)
• Summary of parties’ responses to formal consultation (14.12.16)

The Energy Market Investigation (Prepayment Charge Restriction) Order 2016

• Notice of making an order (7.12.16)
• The Energy Market Investigation (Prepayment Charge Restriction) Order 2016 (7.12.16)
  • Methodology for determining the wholesale index value spreadsheet (Annex 2 to Schedules 1 and 2 of the order) (Excel) (7.12.16)
  • Network cost calculations spreadsheet (Annex 3 to Schedules 1 and 2 of the order) (Excel, 11 MB) (7.12.16)
    • Annex 3 to Schedules 1 and 2 correction note (9.12.16)
• Explanatory note (7.12.16)
• Illustrative price cap model spreadsheet (Excel, 1.2 MB) (updated 9.12.16)
• Summary of parties’ responses to formal consultation (7.12.16)
• News story: CMA puts £300m saving in place for prepayment energy customers (7.12.16)

Responses to formal consultation on draft orders

Responses to the draft database order

• ACS (12.12.16)
• Centrica (12.12.16)
• Citizens Advice (12.12.16)
• Ecotricity (12.12.16)
• EDF Energy (12.12.16)
• Energy UK (12.12.16)
• E.ON (12.12.16)
• First Helpline (12.12.16)
• Good Energy (12.12.16)
• Haven Power (12.12.16)
• Information Commissioner’s Office (12.12.16)
• Octopus Energy (12.12.16)
• RWE npower (12.12.16)
• Scottish Power (12.12.16)
• SSE (12.12.16)
• Utilita (12.12.16)

Responses to the draft gas settlement order

• Information Commissioner’s Office (12.12.16)
• Centrica (5.12.16)
• EDF Energy (5.12.16)
• Energy UK (5.12.16)
• E.ON (5.12.16)
• First Utility (5.12.16)
• Gazprom (5.12.16)
• Good Energy (5.12.16)
• National Grid (5.12.16)
• Octopus (5.12.16)
• Opus (5.12.16)
• RWE npower (5.12.16)
• Scottish Power (5.12.16)
• SGN (5.12.16)
• SSE (5.12.16)
• Utilita (5.12.16)
• Xoserve (5.12.16)

Responses to the draft ECOES/DES order

• Information Commissioner’s Office (12.12.16)
• BUUK Infrastructure (30.11.16)
• Centrica (30.11.16)
• Citizens Advice (30.11.16)
• EDF Energy (30.11.16)
• Elexon (30.11.16)
• E.ON (30.11.16)
• Experian (30.11.16)
• First Helpline (30.11.16)
• First Utility (30.11.16)
• MRASCo (30.11.16)
• National Grid (30.11.16)
• Octopus Energy (30.11.16)
• Scottish Power Energy Networks (30.11.16)
• SGN (30.11.16)
• UK Power Networks (30.11.16)
• Xoserve (30.11.16)

Responses to the draft restricted meters order

• Centrica (5.12.16)
• Citizens Advice (5.12.16)
• EDF Energy (5.12.16)
• Energy UK (5.12.16)
• E.ON (5.12.16)
• First Helpline (5.12.16)
• First Utility (5.12.16)
• RWE npower (5.12.16)
• Scottish Power (5.12.16)
• SSE (5.12.16)
• Utilita (5.12.16)

Responses to the draft microbusinesses order

• ACS (5.12.16)
• Centrica (5.12.16)
• EDF Energy (5.12.16)
• Energy UK (5.12.16)
• E.ON (5.12.16)
• Good Energy (5.12.16)
• Make It Cheaper (5.12.16)
• RWE npower (5.12.16)
• Scottish Power (5.12.16)

Responses to the draft prepayment charge restriction order

• Fuel Poverty Action (30.11.16)
• Centrica (29.11.16)
• Ecotricity (PDF, 4.3Mb) (29.11.16)
• E.ON (29.11.16)
• First Utility (29.11.16)
• Our Power (29.11.16)
• SSE (29.11.16)
• Utilita (29.11.16)
• Citizens Advice (24.11.16)
• Economy Energy (24.11.16)
• EDF Energy (24.11.16)
• Energy UK (24.11.16)
• OVO (24.11.16)
• Robin Hood Energy (24.11.16)
• RWE npower (24.11.16)
• Scottish Power (24.11.16)
• Secure Meters (24.11.16)
• Which? (24.11.16)

Responses to the draft electricity transmission losses order

• DONG Energy (29.11.16)
• EDF Energy (29.11.16)
• SSE (29.11.16)
• Elexon (24.11.16)
• National Grid (24.11.16)
• Renewable UK (24.11.16)
• Scottish Power (24.11.16)

Responses to formal consultation on the draft gas tariff codes undertakings

• Centrica (29.11.16)
• E.ON (29.11.16)
• EDF Energy (24.11.16)
• First Helpline (24.11.16)
• Robin Hood Energy (24.11.16)
• RWE npower (24.11.16)
• SSE (24.11.16)

Further consultation on electricity transmission losses order

• Notice of intention to make an order (4.11.16)
• Modified Draft Energy Market Investigation (Electricity Transmission Losses) Order 2016 (4.11.16)

Formal consultation on draft energy market remedies: undertakings

• Notice of a proposal to accept undertakings (20.10.16)

• The Energy Market Investigation (Gas Tariff Codes) Undertakings 2016 (20.10.16)

Formal consultation on draft energy market remedies: orders

• Press release: CMA targets help for microbusinesses and customers on expensive deals (19.10.16)

• Press release: Next step towards £300m saving for prepayment energy customers (11.10.16)

The Energy Market Investigation (Database) Order 2016

• Notice of intention to make an order (18.10.16)
• Draft Energy Market Investigation (Database) Order 2016 (18.10.16)
• Draft explanatory note (18.10.16)
• Domestic customer and micro business consumer information (Annex 1 to draft explanatory note) (Excel) (18.10.16)

The Energy Market Investigation (ECOES/DES) Order 2016

• Notice of intention to make an order (18.10.16)
• Draft Energy Market Investigation (ECOES/DES) Order 2016 (18.10.16)
• Draft explanatory note (18.10.16)

The Energy Market Investigation (Gas Settlement) Order 2016

• Notice of intention to make an order (18.10.16)
• Draft Energy Market Investigation (Gas Settlement) Order 2016 (18.10.16)
• Draft explanatory note (18.10.16)

The Energy Market Investigation (Microbusinesses) Order 2016

• Notice of intention to make an order (18.10.16)
• The Energy Market Investigation (Microbusinesses) Order 2016 (18.10.16)
• Draft explanatory note (18.10.16)

The Energy Market Investigation (Restricted Meters) Order 2016

• Notice of intention to make an order (18.10.16)
• Draft Energy Market Investigation (Restricted Meters) Order 2016 (18.10.16)
• Draft explanatory note (18.10.16)

The Energy Market Investigation (Prepayment Charge Restriction) Order 2016

• Notice of intention to make an order (11.10.16)
• Draft Energy Market Investigation (Prepayment Charge Restriction) Order 2016 (11.10.16)
• Draft explanatory note (11.10.16)
• Draft Electricity Licence Condition (11.10.16)
• Draft Gas Licence Condition (11.10.16)
• Illustrative price cap model spreadsheet (Excel, 1.2MB) (11.10.16)
• Methodology for determining the wholesale index value spreadsheet (Annex 2 to the Electricity and Gas Licence Conditions) (Excel) (11.10.16)
• Network cost calculations spreadsheet (Annex 3 to the Electricity and Gas Licence Conditions) (Excel, 6.24MB) (11.10.16)
• Reporting template spreadsheet (Excel) (11.10.16)

The Energy Market Investigation (Electricity Transmission Losses) Order 2016

• Notice of intention to make an order (11.10.16)
• Draft Energy Market Investigation (Electricity Transmission Losses) Order 2016 (11.10.16)
• Draft explanatory note (11.10.16)

CMA response to Ofgem consultation on remedies implementation

• CMA response to Ofgem’s Confidence Code Review 2016 (4.10.16)

Phase 2

Timetable

Date of referral: 26.6.14

Statutory deadline: 25.6.16

Full case timetable (updated on 20.1.16)

Final report

• Final report (PDF, 11MB) (24.6.16)
• Summary of final report (24.6.16)
• Summary of AECs and remedies (24.6.16)
• Press release: CMA publishes final energy market reforms (24.6.16)

Final report appendices and glossary

• Appendix 1.1: Terms of reference and conduct of the investigation (24.6.16)
• Appendix 2.1: Legal and regulatory framework (24.6.16)
• Appendix 2.2: Industry background (24.6.16)
• Appendix 4.1: Market power in generation (24.6.16)
• Appendix 4.2: Generation return on capital employed (24.6.16)
• Appendix 5.1: Wholesale electricity market rules (24.6.16)
• Appendix 5.2: Locational pricing in the electricity market in Great Britain (24.6.16)
• Appendix 5.3: Capacity (24.6.16)
• Appendix 6.1: Modelling the impact of zonal transmission loss factors (NERA report) (PDF, 3.3MB) (24.6.16)
• Appendix 6.1a: Data from the NERA report (Excel, 1MB) (24.6.16)
• Appendix 6.2: Responses to remedies (24.6.16)
• Appendix 7.1: Liquidity (PDF, 1.3MB) (24.6.16)
• Appendix 7.2: Foreclosure (24.6.16)
• Appendix 8.1: Social and environmental obligation thresholds (24.6.16)
• Appendix 8.2: Cost pass-through (PDF, 1.6MB) (24.6.16)
• Appendix 8.3: The pricing strategies of the Six Large Energy Firms (24.6.16)
• Appendix 8.4: Smart meter roll-out in Great Britain (24.6.16)
• Appendix 8.5: What is the evidence from the international experience of smart meters? (24.6.16)
• Appendix 8.6: Gas and electricity settlement and metering (24.6.16)
• Appendix 8.7: Demographic characteristics and commentary on certain SSE and RWE analysis (24.6.16)
• Appendix 9.1: CMA domestic customer survey results (PDF, 1.2MB) (24.6.16)
• Appendix 9.2: Analysis of the potential gains from switching (PDF, 1.2MB) (24.6.16)
• Appendix 9.3: Price comparison websites and collective switching (24.6.16)
• Appendix 9.4: Coordination in the retail energy market facilitated by price announcements (24.6.16)
• Appendix 9.5: Restricted meters (24.6.16)
• Appendix 9.6: Prepayment (24.6.16)
• Appendix 9.7: Retail Market Review (24.6.16)
• Appendix 9.8: Analysis of indirect costs by payment method (24.6.16)
• Appendix 9.9: Approach to profitability and financial analysis (24.6.16)
• Appendix 9.10: Analysis of retail supply profitability – ROCE (24.6.16)
• Appendix 9.11: Assessment of indirect costs (24.6.16)
• Appendix 9.12: Cost of capital (24.6.16)
• Appendix 9.13: Retail profit margins (24.6.16)
• Appendix 9.14: Price discrimination (24.6.16)
• Appendix 10.1: Domestic retail detriment direct approach (24.6.16)
• Appendix 10.2: Benchmark analysis of domestic energy bills (24.6.16)
• Appendix 11.1: Assessment of the impact of domestic retail remedies on detriment (24.6.16)
• Appendix 13.1: Standard Condition 32A (24.6.16)
• Appendix 13.2: Results from the CMA’s information request (24.6.16)
• Appendix 13.3: Ipsos MORI Tenants Survey documents (PDF, 3.4MB) (24.6.16)
• Appendix 14.1: Summary of responses to the proposed price cap remedy (24.6.16)
• Appendix 16.1: Microbusinesses (PDF, 1.2MB) (24.6.16)
• Appendix 17.1: Price transparency remedy (24.6.16)
• Appendix 17.2: Auto-rollover remedy (24.6.16)
• Appendix 17.3: Prompts to microbusiness customers on default contracts (24.6.16)
• Appendix 17.4: Third party intermediary code of conduct remedy (24.6.16)
• Appendix 18.1: Regulatory governance and financial transparency (24.6.16)
• Appendix 18.2: Codes AEC (24.6.16)
• Appendix 18.3: Ofgem principal objective and duties (24.6.16)
• Appendix 19.1: Financial reporting remedy – further detail of proposals (24.6.16)
• Appendix 19.2: Codes remedy package (24.6.16)
• Glossary (24.6.16)

Domestic prepayment energy price cap: illustrative model

• Domestic prepayment energy price cap: illustrative model (24.6.16)

Responses to provisional decision on remedies

• Department of Energy & Climate Change (2) (PDF, 2.2MB) (23.6.16)
• Scottish Government (21.6.16)
• BSC Panel (20.5.16)
• TheEnergyShop.com (12.5.16)
• UKRPA (9.5.16)
• CSID (29.4.16)
• EDF Energy (Vincent de Rivaz letter to Roger Witcomb) (29.4.16)
• The Institution of Engineering and Technology (29.4.16)
• Age UK (21.4.16)
• Association of Convenience Stores (21.4.16)
• Centre for Competition Policy (University of East Anglia) (21.4.16)
• Centrica (21.4.16)
• Chartered Institute of Procurement & Supply (21.4.16)
• Citizens Advice (PDF, 1.5MB) (21.4.16)
• Comhairle nan Eilean Siar (Western Isles Council) (21.4.16)
• Co-operative Energy (21.4.16)
• Dawn Butler MP (21.4.16)
• Department of Energy & Climate Change (1) (21.4.16)
• DONG Energy (21.4.16)
• Drax Power Ltd (21.4.16)
• Durham Community Action (21.4.16)
• E3G (21.4.16)
• Ebico (21.4.16)
• Economy Energy (21.4.16)
• Ecotricity Group Ltd (21.4.16)
• EDF Energy (21.4.16)
• Electralink (21.4.16)
• Elexon (21.4.16)
• Energy Advice Line Ltd (21.4.16)
• Energy Intensive Users Group (21.4.16)
• Energy UK (21.4.16)
• E.ON (21.4.16)
• Federation of Small Businesses (21.4.16)
• First Utility (PDF, 1.5MB) (21.4.16)
• Flipper Ltd (21.4.16)
• Flow Energy (21.4.16)
• GB Energy Supply Ltd (21.4.16)
• GBG (21.4.16)
• Gemserv Ltd (21.4.16)
• Green Energy (UK) plc (21.4.16)
• Haven Power (21.4.16)
• iChoosr (21.4.16)
• Inenco (21.4.16)
• Intergen (21.4.16)
• The Independent Renewable Energy Generators Group (21.4.16)
• Make It Cheaper (21.4.16)
• MoneySavingExpert.com (21.4.16)
• Moneysupermarket.com (21.4.16)
• Mr Stephen Littlechild, Sir Callum McCarthy, Eileen Marshall CBE, Stephen Smith and Clare Spottiswoode CBE (1) (21.4.16)
• Mr Stephen Littlechild, Sir Callum McCarthy, Eileen Marshall CBE, Stephen Smith and Clare Spottiswoode CBE (2) (21.4.16)
• MRA Executive Committee (21.4.16)
• National Energy Action (21.4.16)
• National Grid (21.4.16)
• Ofgem (21.4.16)
• Opus Energy (21.4.16)
• OVO Energy (21.4.16)
• Renewable Energy Association (21.4.16)
• Renewable Energy Systems Ltd (21.4.16)
• RenewableUK (21.4.16)
• Rt Hon Caroline Flint MP (PDF, 1MB) (21.4.16)
• RWE (21.4.16)
• Scottish Government (21.4.16)
• Scottish Power (updated on 22.4.16)
• Scottish Renewables (21.4.16)
• Secure Meters (UK) Ltd (21.4.16)
• SmartestEnergy (21.4.16)
• SSE (21.4.16)
• Tempus Energy (21.4.16)
• uSwitch (21.4.16)
• Utilita (PDF, 2MB) (21.4.16)
• The Utility Warehouse (Telecoms Plus plc) (21.4.16)
• Which? (21.4.16)
• Xoserve (21.4.16)

Hearing and meeting summaries post-provisional decision on remedies

• Utilita (21.6.16)
• Ofgem (20.5.16)

Further submissions

• First Utility (9.5.16)
• SSE (9.5.16)
• Rt Hon Frank Field MP DL (29.3.16)
• Mr Stephen Littlechild (9.2.16)
• Mr Stephen Littlechild, Sir Callum McCarthy, Eileen Marshall CBE, Stephen Smith and Clare Spottiswoode (9.2.16)
• Centrica (7.12.15)
• RWE npower (7.12.15)
• RWE npower (PDF, 3.4MB) (3.9.15)

Provisional decision on remedies

• Summary of provisional decision on remedies (10.3.16)
• Summary of AECs and remedies (10.3.16)
• Press release: CMA sets out energy market changes (10.3.16)

Full provisional decision on remedies report

• Provisional decision on remedies report (PDF, 5.8MB) (17.3.16)
• News story: CMA publishes energy proposals in full (17.3.16)

Provisional decision on remedies appendices and glossary

• 2.1: Transmission losses (18.3.16)
• 2.2: Modelling the impact of zonal transmission loss multipliers (report prepared by NERA for the CMA) (PDF, 3.4MB) (18.3.16)
• 2.3: Market splitting and losses proposal from National Grid (18.3.16)
• 3.1: Restricted meters (18.3.16)
• 3.2: Analysis of the potential gains from switching (PDF, 2.7MB) (18.3.16)
• 3.3: Benchmark analysis of domestic energy bills (18.3.16)
• 3.4: Analysis of retail supply profitability – ROCE (PDF, 1.2MB) (18.3.16)
• 3.5: Assessment of indirect costs (PDF, 1.1MB) (18.3.16)
• 3.6: Analysis of costs by payment method (18.3.16)
• 5.1: Smart meter roll-out in Great Britain (18.3.16)
• 5.2: What is the evidence from the international experience of smart meters? (18.3.16)
• 5.3: Half-hourly settlement for profile classes 1 to 4 (18.3.16)
• 5.4: Retail Market Review (18.3.16)
• 5.5: Withdrawing the ‘simpler choices’ component of the RMR rules retail supply to domestic customers (18.3.16)
• 6.1: Creating stronger incentives for third party intermediaries to engage customers (18.3.16)
• 6.2: Ofgem to establish a programme to identify, test and implement measures to provide customers with different or additional information (18.3.16)
• 6.3: Demographic characteristics and commentary on certain SSE and RWE analysis (18.3.16)
• 6.4: Results from the CMA’s information request on restrictions in tenancy agreements and the ‘Tenants Survey’ (18.3.16)
• 6.5: Ipsos MORI Tenants Survey – technical report (18.3.16)
• 6.6: Ipsos MORI Tenants Survey – questionnaire (18.3.16)
• 6.7: Ipsos MORI Tenants Survey – tables of results (PDF, 2.8MB) (18.3.16)
• 7.1: Price cap remedies (18.3.16)
• 9.1: Evidence concerning the price transparency remedy (18.3.16)
• 9.2: Evidence concerning the auto-rollover remedy (18.3.16)
• 9.3: Evidence concerning the prompts to microbusiness customers on default contracts (18.3.16)
• 9.4: Evidence concerning the third party intermediary code of conduct remedy (18.3.16)
• 10.1: Ofgem principal objective and duties (18.3.16)
• 10.2: Financial reporting remedy – views of stakeholders (18.3.16)
• 10.3: Financial reporting remedy – further detail of proposals (18.3.16)
• 10.4: Reform of code governance (18.3.16)
• Glossary (18.3.16)

Notices of intention

• Notice of intention to operate a confidentiality ring following publication of the provisional decision on remedies (10.3.16)
• Notice regarding assessment methodology for losses remedy – consultation on methodology and scenarios (8.12.15)
• Notice regarding assessment methodology for losses remedy - update on appointment of an economic consultancy (30.10.15)
• Notice regarding the appointment of an economic consultancy for the losses remedy assessment (20.10.15)
• Notice of extension of the inquiry statutory period (21.9.15)
• Notice of intention to open a disclosure room (21.9.15)
• Notice regarding assessment methodology for losses remedy (16.9.15)
• Notice of intention to open a disclosure room and operate a confidentiality ring (7.7.15)
• Notice of appointment of external consultant to conduct case study (27.4.15)
• Notice of intention to conduct case study and the appointment of an external consultant (8.4.15)
• Notice of intention to open a disclosure room and operate a confidentiality ring (26.2.15)

Responses to addendum to provisional findings and second supplemental notice of possible remedies

• Ofgem (1.2.16)
• BGL Group (26.1.16)
• Centrica (26.1.16)
• Citizens Advice (26.1.16)
• Ecotricity (26.1.16)
• EDF Energy (26.1.16)
• Energy UK (26.1.16)
• E.ON (26.1.16)
• First Utility (26.1.16)
• Flipper (26.1.16)
• Good Energy (26.1.16)
• Our Power (26.1.16)
• OVO Energy (26.1.16)
• Robin Hood Energy (26.1.16)
• RWE (26.1.16)
• Scottish Power (26.1.16)
• SSE (26.1.16)
• Utilita (26.1.16)

Addendum to provisional findings

16 December 2015: Following the publication of its provisional findings in July 2015, the CMA has further considered whether there are features of the GB energy markets relating to prepayment segments that restrict competition. The CMA has published an addendum to its provisional findings and a second supplemental notice of possible remedies. We welcome comments on both documents by 6 January 2016.

• Notice of addendum to provisional findings (16.12.15)
• Addendum to provisional findings (16.12.15)
• Second supplemental notice of possible remedies (16.12.15)

Evidence

The publication of the evidence of any party on the CMA’s webpages does not indicate in any way endorsement by the CMA of the views expressed in the evidence or acceptance of that evidence. Publication in this way is designed to assist public understanding of the issues.

Summaries of response hearings

• Shell (29.3.16)
• First Utility (8.12.15)
• OVO Energy (8.12.15)
• Transcript of hearing with several advice organisations (8.12.15)
• Centrica (30.11.15)
• Department of Energy & Climate Change (30.11.15)
• E.ON (30.11.15)
• EDF Energy (30.11.15)
• Ofgem (30.11.15)
• RWE (30.11.15)
• Scottish Power (30.11.15)
• SSE (30.11.15)

Responses to the supplemental notice of possible remedies

• Peter Thompson (2.2.16)
• Utiligroup (30.11.15)
• Behavioural Insights Team (PDF, 2.8MB) (23.11.15)
• Centrica (23.11.15)
• Citizens Advice (23.11.15)
• Corona Energy (23.11.15)
• E.ON (23.11.15)
• EDF Energy (23.11.15)
• First Utility (23.11.15)
• Good Energy (23.11.15)
• Green Energy (UK) plc (PDF, 1MB) (23.11.15)
• Moneysupermarket.com (23.11.15)
• Ofgem (23.11.15)
• Opus Energy (23.11.15)
• OVO (23.11.15)
• RWE npower (23.11.15)
• Scottish Power (23.11.15)
• SSE (23.11.15)
• Mr Stephen Littlechild, Sir Callum McCarthy, Eileen Marshall CBE, Stephen Smith and Clare Spottiswoode CBE (23.11.15)
• University of East Anglia - Centre for Competition Policy (23.11.15)
• uSwitch (23.11.15)
• The Utility Warehouse (Telecoms Plus plc) (23.11.15)

Responses to provisional findings and notice of possible remedies

• TheEnergyShop.com (additional) (29.3.16)
• Age UK (2.9.15)
• Anonymous 1 (14.10.15)
• Balancing and Settlement Code Panel (2.9.15)
• Behavioural Insights Team (PDF, 3.8MB) (2.9.15)
• Carbon Capture & Storage Association (2.9.15)
• Centrica (PDF, 1.4MB) (7.9.15)
• Changeworks (10.9.15)
• Chartered Institute of Procurement & Supply (PDF, 1.2MB) (3.9.15)
• Christians Against Poverty (2.9.15)
• Citizens Advice and Citizens Advice Scotland (PDF, 1.9MB) (2.9.15)
• Comhairle nan Eilean Siar (Western Isles Council) (2.9.15)
• Confederation of British Industry (2.9.15)
• Co-operative Energy (2.9.15)
• Corona Energy (2.9.15)
• Data Communications Company (2.9.15)
• Department of Energy & Climate Change (2.9.15)
• Derek W Louden (2.9.15)
• Dieter Helm (2.9.15)
• DONG Energy Power (UK) Ltd (2.9.15)
• Drax and Haven Power Ltd (2.9.15)
• Drax Power Ltd (2.9.15)
• E3G (2.9.15)
• Ecotricity Group Ltd (2.9.15)
• EDF Energy (7.9.15)
• Eggborough Power Ltd (2.9.15)
• Elexon (2.9.15)
• Energy Action Scotland (2.9.15)
• Energy UK (2.9.15)
• ENGIE (2.9.15)
• E.ON (PDF, 1.2MB) (7.9.15)
• ESB (2.9.15)
• Federation of Small Businesses (2.9.15)
• First Utility Ltd (2.9.15)
• Flow Energy (2.9.15)
• Gazprom Energy (2.9.15)
• Gemserv Ltd (2.9.15)
• George Yarrow (2.9.15)
• Global Action Plan (PDF, 1.9MB) (17.11.15)
• Gocompare.com (2.9.15)
• Good Energy (2.9.15)
• Green Energy (UK) plc (31.7.15)
• Highlands & Islands Housing Associations Affordable Warmth Group (PDF, 1.3MB) (2.9.15)
• Industrial and Commercial Shippers and Suppliers Group (2.9.15)
• Inenco (10.9.15)
• Information Commissioner’s Office (2.9.15)
• InterGen (2.9.15)
• Invesco Perpetual (3.9.15)
• Joint Office of Gas Transporters (31.7.15)
• Labrador Ltd (2.9.15)
• Lochalsh & Skye Housing Association (2.9.15)
• Make It Cheaper (2.9.15)
• MoneySavingExpert.com (2.9.15)
• Moneysupermarket.com (29.9.15)
• MRA Service Company Ltd (2.9.15)
• Mr Stephen Littlechild, Sir Callum McCarthy, Eileen Marshall CBE, Stephen Smith and Clare Spottiswoode CBE (17.7.15)
• National Energy Action (2.9.15)
• National Grid (2.9.15)
• Northern Powergrid (PDF, 2.4MB) (2.9.15)
• Ofgem (revised with additional material) (PDF, 1.53 Mb) (updated on 14.10.15)
• Oil & Gas UK (2.9.15)
• Ombudsman Services (10.9.15)
• Opus Energy (2.9.15)
• OVO (2.9.15)
• Paul Hunt (2.9.15)
• Payzone (PDF, 1.2MB) (3.9.15)
• Peter Thompson (31.7.15)
• RenewableUK (2.9.15)
• RES Group (2.9.15)
• RWE npower (PDF, 3.3MB) (7.9.15)
• Scottish Power (PDF, 1.7MB) (7.9.15)
• Shell (2.9.15)
• Simplify Digital Ltd (2.9.15)
• Smart Energy GB (PDF, 1.1MB) (2.9.15)
• Spark Energy (2.9.15)
• SSE (PDF, 3.4MB) (7.9.15)
• Sustainability First (2.9.15)
• TheEnergyShop.com (PDF, 2.5MB) (17.11.15)
• thePeoplesPower (2.9.15)
• The Utility Warehouse (2.9.15)
• Total Gas & Power Ltd (2.9.15)
• University of East Anglia - Centre for Competition Policy (2.9.15)
• University of Exeter - Energy Policy Group (2.9.15)
• uSwitch (2.9.15)
• Utilities Intermediaries Association (3.9.15)
• Utilities Savings Ltd (2.9.15)
• Which? (2.9.15)
• Xoserve (2.9.15)

Responses to updated issues statement

• OVO (12.5.15)
• First Utility (28.4.15)
• Which? (27.4.15)
• TheEnergyShop.com (27.4.15)
• The University of Exeter – Energy Policy Group (27.4.15)
• Drax (27.4.15)
• Prof. Michael Grubb of University of Central London (27.4.15)
• Good Energy (27.4.15)
• Fuel Poverty Action (27.4.15)
• Utilita (27.4.15)
• Centrica (9.4.15)
• SSE (9.4.15)
• Scottish Power (9.4.15)
• EDF Energy (9.4.15)
• E.ON (9.4.15)
• RWE npower (9.4.15)
• Carbon Capture & Storage Association (2.4.15)
• Gemserv (2.4.15)
• Green Frog Power Limited (2.4.15)
• MPF Operations Limited (2.4.15)
• Ceres Energy (1.4.15)
• Department for Energy and Climate Change (1.4.15)
• Elexon (1.4.15)
• GDF Suez (1.4.15)
• National Grid (1.4.15)
• Ofgem (1.4.15)
• Smart DCC Ltd (1.4.15)
• uSwitch (1.4.15)
• Mr Derek Louden (25.3.15)
• Mr Stephen Littlechild and others (5.3.15)

Hearing summaries

As part of its evidence-gathering process, the CMA is holding formal hearings with a range of industry participants and interested parties.

• Department of Energy & Climate Change (8.7.15)
• Ofgem (8.7.15)
• Professor George Yarrow (8.7.15)
• Tempus Energy (8.7.15)
• Centrica (19.6.15)
• Drax Power (19.6.15)
• EDF Energy (19.6.15)
• E.ON (19.6.15)
• RWE (19.6.15)
• Scottish Power (19.6.15)
• SSE (19.6.15)
• Opus Energy (5.6.15)
• Ovo Energy (5.6.15)
• First Utility (15.5.15)
• The Co-operative Energy (14.5.15)
• Which? (1.5.15)
• The Big Deal (28.4.15)
• Federation of Small Businesses (21.4.15)
• uSwitch (21.4.15)
• Utility Warehouse (10.4.15)
• Xoserve (24.3.15)
• Energy Ombudsman (16.2.15)
• Citizens Advice and Citizens Advice Scotland (28.1.15)
• Mr Stephen Littlechild (28.1.15)
• Elexon and BSC Panel (21.1.15)
• Centre for Competition Policy of UEA (21.1.15)
• Ofgem (21.1.15)
• University of Exeter Energy Policy Group (21.1.15)
• Department of Energy & Climate Change (7.1.15)
• National Grid (27.11.14)

Initial submissions

The CMA’s energy market investigation is independent and welcomes submissions from all interested parties.

• Centrica (11.8.14)
• Citizens Advice Bureau and Citizens Advice Scotland (18.8.14)
• Department of Energy & Climate Change (30.7.14)
• Drax Power (18.8.14)
• E.ON (18.8.14)
• Ecotricity (18.8.14)
• EDF Energy (18.8.14)
• EEE Limited (25.3.15)
• EEE Limited (6.10.14)
• Elexon (15.9.14)
• ESB (18.8.14)
• Federation of Small Businesses (30.9.14)
• Fergus Ewing MSP, Minister for Business, Energy and Tourism (7.1.15)
• Roger Witcomb, Panel Chair, in response to Fergus Ewing MSP, Minister for Business, Energy and Tourism (21.1.15)
• First Utility (18.8.14)
• Good Energy (14.8.14)
• Haven Power (14.8.14)
• iChoosr (19.1.15)
• Independent Generators Group (18.8.14)
• Intergen (18.8.14)
• Mr Dieter Helm (9.2.15)
• Mr George Yarrow, Chairman of the Regulatory Policy Institute (18.8.14)
• Mr Hugh Small (27.10.14)
• Mr Paul Hunt (27.10.14)
• Mr Paul Hunt (14.8.14)
• Mr Stephen Littlechild (25.6.15)
• Mr Stephen Littlechild (24.3.15)
• Mr Stephen Littlechild (16.2.15)
• Mr Stephen Littlechild (19.1.15)
• Mr Stephen Littlechild (27.10.14)
• Mr Stephen Littlechild (18.8.14)
• Mr Stephen Littlechild, Sir Callum McCarthy, Eileen Marshall CBE, Stephen Smith and Clare Spottiswoode CBE (11.8.14)
• National Grid (21.1.15)
• National Grid (18.8.14)
• Ofgem (26.1.15)
• Ofgem (26.1.15)
• Ofgem (15.12.14)
• Ofgem (18.8.14)
• Ofgem (30.7.14)
• OVO Energy (18.8.14)
• Professor Catherine Waddams (29.10.14)
• Reform (7.1.15)
• Roger Bell (28.4.15)
• RWE npower (20.8.14)
• RWE npower (30.7.14)
• Sainsbury’s Supermarkets Ltd (5.9.14)
• Scottish Power (18.8.14)
• Spark Energy (18.8.14)
• SSE (20.8.14)
• Tempus Energy (7.1.15)
• The Big Deal (27.10.14)
• The Co-operative energy (5.9.14)
• The Energy Ombudsman (14.8.14)
• TheEnergyShop.com (11.2.15)
• Tim Yeo MP, Chairman of the Energy and Climate Change Committee (11.8.14)
• Roger Witcomb, Panel Chair, in response to Tim Yeo MP (11.8.14)
• TMA Data Management (14.8.14)
• University of East Anglia Centre for Competition Policy (12.8.14)
• University of Exeter Energy Policy Group (18.8.14)
• Uswitch (14.8.14)
• Utilita (5.9.14)
• Utility Warehouse / Telecom Plus plc (18.8.14)
• Which? (18.8.14)

Provisional findings and possible remedies

• Supplemental notice of possible remedies (26.10.15)
• Notice of extension to deadline for responses (17.7.15)
• Summary of provisional findings report (7.7.15)
• Notice of provisional findings (7.7.15)
• Notice of possible remedies (7.7.15)
• Press release: CMA sets out case for energy market reform (7.7.15)

Full provisional findings report

• Provisional findings report (PDF,5.3Mb) (10.7.15)

Appendices and Glossary

• 1.1: Terms of reference and conduct of the investigation (10.7.15)
• 2.1: Legal and regulatory framework (10.7.15)
• 2.2: Industry background (PDF,1.2Mb) (10.7.15)
• 4.1: Market power in generation (PDF,1Mb) (10.7.15)
• 4.2: Generation return on capital employed (PDF,1Mb) (10.7.15)
• 5.1: Wholesale electricity market rules (10.7.15)
• 5.2: Locational pricing in the electricity market in Great Britain (10.7.15)
• 5.3: Capacity (10.7.15)
• 6.1: Liquidity (PDF,2.1Mb) (10.7.15)
• 6.2: Foreclosure (10.7.15)
• 7.1: Social and environmental obligation thresholds (10.7.15)
• 7.2: Cost pass-through (PDF,2.1Mb) (10.7.15)
• 7.3: The pricing strategies of the Six Large Energy Firms (PDF,1.2Mb) (10.7.15)
• 7.4: Analysis of the potential gains from switching (PDF,1.8Mb) (10.7.15)
• 7.5: Descriptive statistics (retail) (PDF,1.7Mb) (10.7.15)
• 8.1: CMA domestic customer survey results (PDF,1.8Mb) (10.7.15)
• 8.2: Impact of the Retail Market Review (10.7.15)
• 8.3: Price comparison websites and collective switching (10.7.15)
• 8.4: Price discrimination (differences in costs to serve customers on different tariffs) (10.7.15)
• 8.5: Coordination in the retail energy market facilitated by price announcements (10.7.15)
• 8.6: Gas and electricity settlement and metering (10.7.15)
• 9.1: Microbusinesses (PDF,2Mb) (10.7.15)
• 10.1: Approach to profitability and financial analysis (10.7.15)
• 10.2: Retail energy supply profit margin analysis (PDF,1.4Mb) (10.7.15)
• 10.3: Analysis of retail supply profitability – ROCE and economic profit (10.7.15)
• 10.4: Cost of capital (PDF,1.5Mb) (10.7.15)
• 10.5: Assessment of the competitive benchmark in retail energy supply (PDF,3Mb) (10.7.15)
• 10.6: Retail profit margin comparators (10.7.15)
• 10.7: Domestic pricing analysis (10.7.15)
• 11.1: Financial transparency (10.7.15)
• 11.2: Codes and regulatory governance (PDF,1.4Mb) (10.7.15)
• Glossary (10.7.15)

Analysis

The updated issues statement and working papers are published to invite comments and assist the inquiry group to develop its thinking on key areas. They should not be considered as containing the group’s definitive views. For further information see the CMA’s market investigation guidelines.

• Extension to deadlines for responses to the updated issues statement and working papers (12.3.15)

Updated issues statement

• Press release: Energy market investigation – updated issues statement (18.2.15)
• Updated issues statement (18.2.15)
• Glossary (18.2.15)

Working papers

• Profitability of retail energy supply: profit margin analysis (16.3.15)
• Liquidity (13.3.15)
• Gas and electricity settlement and metering (12.3.15)
• Descriptive statistics – retail (11.3.15)
• Gas wholesale market (10.3.15)
• Descriptive statistics – generation and trading (6.3.15)
• Microbusinesses (5.3.15)
• Market power in generation (5.3.15)
• Coordination in the retail market facilitated by price announcements (5.3.15)
• Codes (4.3.15)
• Capacity (3.3.15)
• Pricing strategies (2.3.15)
• Wholesale electricity market rules (27.2.15)
• Price comparison websites (26.2.15)
• Cost of capital (25.2.15)
• Generation profitability (25.2.15)
• Foreclosure (24.2.15)
• Gains from switching (24.2.15)
• Cost pass-through (23.2.15)
• Locational pricing (23.2.15)
• Legal and regulatory framework (20.2.15)
• Retail barriers to entry and expansion (18.2.15)
• Approach to financial and profitability analysis (8.12.14)

Customer survey: CMA commissioned research

• GfK NOP customer survey report (20.2.15)
• GfK NOP technical report (20.2.15)
• GfK NOP survey tables (Excel, 11.5MB) (25.2.15)
• GfK NOP survey tables (ODS, 9MB) (25.2.15)

Energy market investigation updates

• Press release: CMA extends energy investigation timetable (21.9.15)
• Short update on progress with the energy market investigation (17.10.14)

External advisers

• External advisers’ participation in the energy market investigation and disclosures of interest (30.3.15)

Research with tenants: invitation to comment

7 October 2015: The CMA has appointed Ipsos MORI to conduct, on its behalf, research with domestic energy customers in Great Britain who are tenants. The research will be used to understand the perceived or actual barriers to switching supplier that may be experienced by tenants, including contractual restrictions associated with tenancy agreements and other barriers to switching which may limit tenants’ ability to engage in the energy market.

We welcome comments on the proposed methodology and draft of the questionnaire to be used.

• Notice of invitation to comment on proposed methodology/questionnaire for research with tenants (7.10.15)
• Draft questionnaire (7.10.15)

Survey of domestic customers of energy suppliers

Invitation to comment on draft customer survey questionnaire

8 September 2014: Further to the CMA’s notice of 25 July and 4 September (below) on its decision to conduct a survey of domestic customers of energy suppliers in Great Britain, the CMA now welcomes comments on the draft of the questionnaire to be used in the survey.

• Invitation to comment on draft customer survey questionnaire (8.9.14)
• Draft customer survey questionnaire (8.9.14)

Market research agency appointment

4 September 2014: Further to the CMA’s notice of 25 July 2014 (below), the CMA has now appointed market research agency GfK NOP Ltd (GfK), to conduct a survey of domestic customers of energy suppliers in Great Britain. The CMA also invites comments on the outline design for the survey.

• Survey notice (4.9.14)

Invitation to comment on research agencies

25 July 2014: As part of its investigation into the energy market, the CMA is considering engaging a market research agency to carry out research. We have identified a number of firms to undertake this research and comments are invited on potential conflicts of interest or any other restriction on the firms’ suitability to carry out the work.

• Invitation to comment on research agencies (25.7.14)

Issues statement

24 July 2014: The issues statement sets out the scope of the energy market investigation. It outlines initial theories on what might be adversely affecting competition and what the resulting effects could be for customers. It doesn’t set out findings or conclusions.

• Energy market investigation issues statement

• Press release: Energy market investigation: CMA publishes issues statement

Terms of reference

21 July 2014: The CMA published Ofgem’s terms of reference for the CMA’s investigation.

• Energy terms of reference

Market investigation reference group appointed

1 July 2014: The CMA appointed the market investigation reference group.

Roger Witcomb (Chairman), Lesley Ainsworth, Martin Cave, Malcolm Nicholson and Robert Spedding.

• Investigation group appointment (1.7.14)
• Disclosure of interests (20.5.16)

Case opened

Press release: Energy market referred to CMA (26.6.14)

Phase 1

Please see the joint review of competition in the energy market case page for more information.

On 26 June 2014, Ofgem announced its final decision to refer the energy market in the UK to the CMA for a market investigation. Having considered responses to the consultation, Ofgem remained of the view that there were reasonable grounds for suspecting that features of the energy market were preventing, restricting or distorting competition.

On 27 March 2014, following a joint assessment of competition in the energy market by Ofgem, the Office of Fair Trading and the Competition and Markets Authority, Ofgem published a consultation document setting out its provisional decision to refer the energy market in the UK to the CMA and opened a public consultation. The consultation document identified a number of features, based on the joint assessment, that Ofgem suspected were - either individually or in combination - preventing, restricting or distorting competition in this market. The public consultation closed on 23 May 2014.

Published 9 February 2016
Last updated 27 February 2018 + show all updates

1. 27 February 2018

   Link to government response to energy market investigation findings published.

2. 12 June 2017

   Letter added under 'The Energy Market Investigation (ECOES/DES) Order 2016’.

3. 22 December 2016

   Explanatory note to the database order updated.

4. 20 December 2016

   Final undertakings and summary of responses published.

5. 14 December 2016

   Final orders and summaries of responses published.

6. 12 December 2016

   Responses to draft orders published.

7. 9 December 2016

   Network cost calculations spreadsheet correction note added and illustrative price cap model updated.

8. 7 December 2016

   Final order and summary of responses published.

9. 5 December 2016

   Responses to draft orders published.

10. 30 November 2016

    Responses to draft orders published.

11. 29 November 2016

    Responses to draft orders and undertakings published.

12. 24 November 2016

    Responses to draft orders and undertakings published.

13. 4 November 2016

    Further consultation on draft order added.

14. 20 October 2016

    Consultation on draft undertakings launched.

15. 19 October 2016

    Consultation on further draft orders added.

16. 11 October 2016

    Consultation on draft orders launched.

17. 4 October 2016

    CMA response to Ofgem consultation added.

18. 11 July 2016

    Remedies implementation timetable published.

19. 24 June 2016

    Full final report published.

20. 24 June 2016

    Summary of final report and summary of AECs and remedies published.

21. 23 June 2016

    Response to provisional decision on remedies published.

22. 21 June 2016

    Response to provisional decision on remedies and hearing summary published.

23. 20 May 2016

    Disclosure of interests updated (under 'Market investigation reference group appointed') and response to provisional decision on remedies and meeting summary published.

24. 12 May 2016

    Response to provisional decision on remedies published.

25. 9 May 2016

    Further submissions and response to provisional decision on remedies published.

26. 29 April 2016

    Responses to provisional decision on remedies published.

27. 22 April 2016

    Updated response to provisional decision on remedies published.

28. 21 April 2016

    Responses to provisional decision on remedies published.

29. 29 March 2016

    Summary of response hearing, further submission and response to provisional findings and notice of possible remedies published.

30. 18 March 2016

    Appendices and glossary to the provisional decision on remedies published.

31. 17 March 2016

    Full provisional decision on remedies report published.

32. 10 March 2016

    Notice of intention published.

33. 10 March 2016

    Summary of provisional decision on remedies and summary of AECs and remedies published.

34. 9 February 2016

    Further submissions published.