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| Competition
Commission Rejection of Market Abuse Licence Condition - EIUG's
Reaction |
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The Energy Intensive Users
Group (EIUG) is very disappointed with the Competition Commission's decision.
EIUG is concerned about the implications this has for the ability of the
regulator act against further market abuse in a timely and efficient way.
The new electricity trading arrangements (NETA) will
solve many of the problems associated with the current pool. However, these
complex and as yet untried new trading arrangements may also present gaming
opportunities for generators. There has been ample evidence of market abuse
under the current pool system. Industrial consumers are also acutely aware of
recent lessons from the gas market.
Wholesale gas prices have doubled this year and many
suspect market manipulation - coupled with limited regulatory powers - may be
to blame. Rising gas prices also make it less easy for new gas-fired generation
to enter the market, which makes the Competition Commission's faith in
increased competition seem naïve.
Jeremy Nicholson, EIUG's economic adviser, says: "We
think this is a step in the wrong direction. Customers must have confidence
that Ofgem has the power it needs to do its job. This decision does nothing to
protect customers."
Notes to editors:
- EIUG gave evidence earlier this year to the Competition
Commission in support of Ofgem's position on the market abuse licence condition
for generators.
- For further information please contact Jeremy Nicholson
on 020 7343 3159, or 07785 280 568 (mobile).
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