Current status: Answered by Fergus Ewing on 3 November 2011
To ask the Scottish Executive what its position is on the need for an investigation by the Competition Commission into the gas and power market.
As part of its Retail Market Review, Ofgem has made a number of proposals to make the market work better for consumers, including simplification of tariffs and enhancing liquidity in the wholesale market by requiring the big six energy companies to auction up to 20 per cent of their power generation. These proposals have the potential to enhance consumer choice and encourage competition in the market.
Ofgem has estimated that referral to the Competition Commission could take up to three years, delaying much needed investment in new generating capacity. We would urge Ofgem to bring forward their proposals as soon as possible, and better still for the energy companies to take rapid voluntary action.