On October 18, 2011, the United Kingdom Office of Fair Trading (OFT) published the findings of its market study on off-grid energy. It found that, in the vast majority of cases, competition works well and that the off-grid energy sector does not need price regulation. However, it raises concerns that some off-grid fuel suppliers may not be treating customers fairly and is examining their practices further.

Background

Market studies are carried out by the OFT under section 5 of the Enterprise Act 2002 which allows the OFT to obtain information and conduct research to allow a market-wide consideration of both competition and consumer issues. Possible outcomes of market studies include: enforcement action by the OFT, a market investigation reference to the Competition Commission (CC) for a fuller inquiry, recommendations for changes in laws and regulations, recommendations to regulators, self-regulatory bodies and others to consider changes to their rules, campaigns to promote consumer education and awareness, or a clean bill of health.

Please see full Alert below for further information.