Concluding the 40-year utilities experiment: death spirals or rebirth, From: Prof. Catherine Mitchell, Presentation to: Beesley Lectures 2019 – Lecture 4, Institute of Directors, London, 23rd October 2019. Summary: Energy governance; Agreement/disagreement with analysis; Different perspectives; Wider governance issues; Recommendations for new governance; What does it mean for incumbents? Conclusion.
IGov 23rd Oct 2019 read more »
The competition watchdog has launched an inquiry into Ovo Energy’s £500 million acquisition of the domestic supply arm of SSE. The Competition and Markets Authority said that it would conclude an initial investigation by December 18 into the transaction, in which Ovo would become Britain’s second largest household energy supplier. Ovo would take on SSE’s 3.5 million household customers in addition to the 1.5 million it already supplies. The Bristol-based company, which employs about 2,000 people, would also take on 8,000 SSE staff. The inquiry, which is usual for this kind of transaction, will consider whether the deal is likely to result in a substantial lessening of competition within any market in the UK. If it finds that this is a risk, it could then launch an in-depth inquiry, with the potential to delay or even derail the deal. The proposed sale by SSE came after its plan to merge the division with Npower, another big supplier, failed.
Times 25th Oct 2019 read more »
SSE has insisted the planned £500 million sale of its household supply business to Ovo will be good news for consumers although the competition watchdog has launched a probe into it. The CMA said it had launched an investigation to consider whether the deal announced by Perth-based SSE in September could be expected to result in a substantial lessening of competition. The deal would see around 3.5 million household customers and 8,000 employees transfer from SSE to Ovo, which has headquarters in Bristol. The CMA’s decision represents an unwelcome complication for SSE. The group has spent months trying to exit the retail business in order to focus on power generation and supply. The CMA could block the deal with Ovo or impose onerous conditions if it decides there are sufficient grounds for concern.
Herald 25th Oct 2019 read more »