State of competition in the energy market assessment

As Great Britain’s energy markets regulator, we are committed to making a positive difference for consumers. This is why we referred the retail energy market for full investigation to the Competition and Markets Authority (CMA)

You can find a list of publications associated with our state of the market assessment and subsequent referral to the CMA at the bottom of this page.

Competition assessment

Our decision to refer the market to the CMA in June 2014 follows our first review of competition in the retail energy market, which we conducted with the Office of Fair Trading and CMA. We reported our findings in March 2014, which showed that competition isn’t working as well as it should for consumers.

Our findings included increasing distrust of energy suppliers, uncertainty about the costs and benefits of the relationship between the supply businesses and the generation arms of the six largest suppliers, and rising profits with no clear evidence of suppliers reducing their own costs or becoming better at meeting customer expectations.

View the report in full: State of the market assessment

Restoring consumer confidence

The energy market is going to change rapidly over the next few years with the roll-out of smart meters, the government’s electricity market reforms, and closer integration with European energy markets.

The remedies proposed by the CMA should ensure there are no barriers to stop effective competition bearing down on prices and delivering the benefits of these changes to consumers. This will help rebuild consumer trust and confidence in the market.

Where we are now

We have begun implementing the CMA’s remedies.

Publications and updates

  • Published: 7th Aug 2015
  • Open letters and correspondence
  • 1 Associated documents
In this letter we set out our views on the Competition and Markets Authority's (CMA) Provisional Findings and our initial thinking on some of the remedies.

  • Published: 27th Mar 2015
  • Open letters and correspondence
  • 1 Associated documents
This letter sets out our views on the Competition and Markets Authority's Updated Issues Statement.

  • Published: 26th Jan 2015
  • Reports and plans
  • 1 Associated documents
This paper provides background to the extent to which the complexity and scale of the regulatory architecture and the accessibility of the governance arrangements act as a barrier to effective competition.

  • Published: 26th Jan 2015
  • Reports and plans
  • 1 Associated documents
This is a submission to the Competition and Markets Authority on the effects of incumbency in energy retail markets as a potential barrier to effective competition.

  • Published: 16th Dec 2014
  • Reports and plans
  • 1 Associated documents
This is a submission to the Competition and Markets Authority to assist with its investigation into the energy markets, focusing on the wholesale electricity market. It sets out our views on what a well functioning market should achieve.

  • Published: 3rd Sep 2014
  • Agendas, minutes and presentations
  • 1 Associated documents
Memorandum of Understanding between the Competition and Markets Authority and the Gas and Electricity Markets Authority.

  • Published: 18th Aug 2014
  • Open letters and correspondence
  • 1 Associated documents
Our response to the Competition and Markets Authority (CMA) issues statement. In this letter we provide more detail about our monitoring and policy work in wholesale electricity markets which could be important to the CMA’s investigation into the energy...

  • Published: 23rd Jul 2014
  • Open letters and correspondence
  • 1 Associated documents
This is our initial submission to the Competition and Markets Authority (CMA) after we referred the energy market to them for investigation in June 2014.

  • Published: 26th Jun 2014
  • Decisions
  • 1 Associated documents
This document sets out our decision to make a market investigation reference in respect of the supply and acquisition of energy in Great Britain

  • Published: 27th Mar 2014
  • Reports and plans
  • 2 Associated documents
This document is our joint assessment of the state of competition in the energy market in Great Britain, and how well competition is serving the interests of households and small businesses.

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