In the event of merger activity in the energy market, Ofgem’s role is to advise the Office of Fair Trading (OFT), which can decide to approve a merger or acquisition or refer it to the Competition Commission.
Ofgem may seek views from interested parties including consumer groups and the industry on the impact any merger or acquisition would have on competition in the energy market before deciding on the advice it would offer the OFT.
Ofgem may also be required to advise the European Commission if a merger would have an impact on the European energy market.