The impact of EDF putting business up for sale

As reported in the Daily Telegraph today in a piece written by Rowena Mason. EDF Energy has set until the 21 June to assess takeover offers for the sale of its UK electricity distribution network business.

Ofgem has raised concerns over this move and has asked that National operators face similar restrictions on mergers and takeovers to those that the water companies are subject to.

The main concern being the impact that such mergers will have on the bills that customers end up paying.  If the main energy suppliers are allowed to swallow up the competition then it will lead to less competition and inevitably higher energy prices. 

Also, the government has suggested some improvement to the policing of energy companies within the queen’s speech with regard to availability of supply. The likelihood appears to be that gas providers will be forced by law to ensure they can guarantee sufficient energy storage to avoid the possibilities of power cuts. Again the danger of putting in place such a scheme you would assume could only be at the penalty of higher prices.

It will be interesting over the coming months to see what policing the government attempts to put in place over the Big 6 energy suppliers, and also their reaction to any such move.

  

 

Leave a Reply

Name (required)

Mail (will not be published) (required)

Website