
Allan Asher, CEO of Energywatch, claims that the energy regulator Ofgem is failing by not referring the UK energy markets to the Competition Commission. During the opening session of the enquiry into energy prices, it stated it was a myth that there was any vigorous competition between the energy companies. Whilst there is no evidence of collusion, the gas market is seen to be dominated by British Gas while the power market has been concentrated down to 6 Vertically Integrated Players:- Scottish and Southern, Scottish Power, EdF, Eon, RWE and Centrica. He suggested that vertical integration should be reversed as any new entrants shy away as the incumbents can adjust their profit margins across their retail and generation arms. He also proposed that incumbents should be forced to sell a proportion of their power onto forward markets, and greater disclosure of long-term contracts was needed.
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