30/03/2009
Ofgem announcement about ‘Market Power’ - comments from the Association Of Electricity Producers
Commenting on Ofgem’s consultation ‘Addressing Market Power Concerns in the Electricity Wholesale Sector – Initial Policy Proposals’ (30 March), David Porter, Chief Executive of the Association of Electricity Producers said
‘I recall that this is the third time that Ofgem has proposed something like this. The two previous proposals were rejected – the first by the Competition Commission and the second by the Secretary of State for Trade and Industry. Those proposals were not able to distinguish between legitimate commercial behaviour in a competitive market and ‘abuse’ and were not able to provide proper guidance to companies on what was allowed or disallowed. That kind of uncertainty is damaging to companies and their investments. The electricity market in Britain is acknowledged to be one of the most open and competitive anywhere. We shall look constructively at what Ofgem has proposed this time and give a full response.’
ENDS