Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

Ofgem proposes radical overhaul in energy market

Energy regulator Ofgem has unveiled proposals today for a major overhaul of the UK market including the “Big Six” auctioning up to 20 percent of their electricity generation output.

Ofgem’s review found that competition is being stifled by a combination of tariff complexity, poor supplier behaviour, and lack of transparency.

Ofgem is proposing a new licence condition that would require the Big Six - British Gas, EDF Energy, npower, Scottish Power, E.on, and Scottish and Southern Energy - to make available between 10% and 20% of their power generation into the market through a regular Mandatory Auction (MA).

Ofgem is also consulting on Mandatory Market Making Arrangements to ensure that smaller players in the energy market have access to a transparent and accessible platform that allows continuous trading.

Ofgem giving the industry until 1 June 2011 to engage and develop proposed interventions or to propose alternative arrangements to address its liquidity and contestability concerns.

Ofgem also announced a new investigation into Scottish Power’s standard credit prices.

This is in addition to an ongoing investigation into British Gas, EDF Energy and npower and into how they handle consumers’ complaints.

Ofgem is also continuing its investigations into misselling by EDF Energy, npower, Scottish Power, and Scottish and Southern Energy.

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Please note comments made online may also be published in the print edition of New Civil Engineer. Links may be included in your comments but HTML is not permitted.