Industry watchdog the Competition and Markets Authority (CMA) has extended it timetable to deliver a “once in a generation” shake up of the energy industry.
The chairman of the investigation described it as the most comprehensive into the market since privatisation.
The CMA now plans to publish its provisional decision on remedies in January 2016 with a view to reaching its final decision by the end of April 2016.
The extension is to allow the CMA sufficient time to consider the many detailed responses received from suppliers, consumer groups, government and regulators to the provisional findings and range of potential remedies published in July.
The inquiry group also wants to ensure it has sufficient time to conclude the further evidence-gathering and analysis required for the final report and to design any subsequent remedy package to make it as compehrensive as possible.
The CMA’s review was prompted by a request by energy regulator Ofgem, which last year sought an investigation into whether the utilities used their market power to increase prices. Its final recommendations were originally due to be published by the end of 2015.
Market investigation inquiry groups are permitted to extend the statutory deadline by six months in circumstances such as this where there are special reasons.
Roger Witcomb, chairman of the energy market investigation, said: “This is a once in a generation opportunity to shape the future of this market for the better. It’s important that we get it right.
“This investigation – and the measures that could result from it – will have long-standing consequences for millions of customers in an industry of vital importance to the whole country”.
The investigations provisional findings identified a large number of areas where there might be a competition problem, including a possible lack of consumer engagement in both domestic and micro-business sectors.
Other issues relate to the ‘four tariffs rule’, the Department of Energy and Climate Change’s processes for allocating clean energy subsidies, the industry’s gas and electricity settlement systems, the roles of regulator Ofgem and DECC in regulatory decision-making, locational pricing of electricity, and energy code governance.
Witcomb said: “This is a huge programme of work and we have concluded that we could not complete it by the original statutory deadline.
“We have therefore decided there are special reasons for extending the reference period which will allow us some extra time to finish the job.”
In July, the CMA said the UK’s largest energy suppliers will remain intact as the CMA said it found no evidence to support breaking them up.
The watchdog recommended that the industry help customers better understand their bills and switch providers to ensure they get the lowest prices.
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