UK Regulator Probes SSE, Npower Merger
British regulators have launched an in-depth investigation into the tie-up between the retail power unit of SSE Plc and Npower, owned by Germany's Innogy, saying it may reduce competition and increase prices for some households.The merger would create Britain's second-largest retail power provider and reduce the "Big Six" dominating the market to five companies when they are already facing political scrutiny for their tariffs and pressure from smaller rivals.It also comes as German energy giants RWE and E.ON plan to carve up Innogy. The deal would make E.ON, another of the "Big Six", the parent company of Npower.
UK: Wood Group Takeover of Amec Could Hurt Competition
Britain's market regulator said a takeover of Amec Foster Wheeler by oilfield services firm Wood Group could hurt competition. Wood Group in March agreed to buy Amec Foster Wheeler for 2.2 billion pounds ($2.7 billion). Britain's Competition and Markets Authority (CMA) said that the merger could lead to competition concerns in the supply of engineering and construction services and operation and maintenance services on the UK continental shelf. Wood Group has until August 9 to formalise its proposals for addressing concerns about the deal or it will be referred for an in-depth probe, the CMA said. Reporting by Rahul B
British Watchdog Reviews Centrica Gas Storage Obligations
Britain's competition watchdog on Tuesday launched a review of the storage capacity that the Rough gas facility operated by Centrica is obliged to sell after problems at the site. The Competition and Markets Authority (CMA) review started on Tuesday follows a request from Centrica to ensure that Britain's largest gas storage site is not obliged to sell more storage than it can physically deliver. Centrica said that testing at the site will last until at least the end of the summer 2016 injection season, between September and December, to determine whether a storage limit of between 29 terawatt-hours (TWh) and 32 TWh could be lifted.
UK Energy Suppliers Actions are Legal: watchdog
Britain's largest energy suppliers have acted in line with competition laws, the country's anti-trust watchdog said on Tuesday in its preliminary findings of an anti-trust probe. "The presence of vertically integrated firms does not have a detrimental impact on competition," the Competition and Markets Authority (CMA) said. A year ago, the CMA launched an investigation into whether Britain's six largest energy suppliers, which hold around 90 percent of the market, are abusing their dominant market position. The six utilities are now unlikely to face the worst-case scenario of being broken up.
UK Energy Market Abuse to Include Jail Terms
Energy market riggers could face up to 2 years in prison. New criminal sanctions should come into force next spring. Utilities under pressure to improve transparency. The British government has proposed penalties including potential prison terms for people who manipulate the gas and electricity markets. Energy regulators can currently investigate and fine people found breaching rules on energy market abuse but cannot send them to prison or impose a criminal record. The government wants to widen those powers to safeguard consumers from unfair practices, the Department of Energy and Climate Change (DECC) said on Wednesday.
Price Cut Pressure Mounts on UK Energy Firms
Britain's big energy suppliers are coming under mounting pressure from consumer groups and politicians to cut household power and gas bills after a sharp drop in wholesale costs boosted the firms' profit margins. The country's "big six" energy providers, which supply 96 percent of UK households, are being urged to tame rising energy costs, and at least one lawmaker in Prime Minister David Cameron's Conservative party has called on the government to act swiftly to break up the energy companies. Tapping voter discontent ahead of next May's general election, Labour leader Ed Miliband has pledged to put a 20-month freeze on household energy bills if he is elected.
Price Cut Pressure Mounts on UK Energy Firms
Big six suppliers' pre-tax profit margins double in past year; Wholesale prices have dropped due to mild winter, healthy stocks. Energy price cuts could be put off due to Miliband freeze pledge. Britain's big energy suppliers are coming under mounting pressure from consumer groups and politicians to cut household power and gas bills after a sharp drop in wholesale costs boosted the firms' profit margins. The country's "big six" energy providers, which supply 96 percent of UK households, are being urged to tame rising energy costs, and…
