Centrica share price: Group responds to CMA review findings
Centrica (LON:CAN) this morning issued a statement, responding to the provisional findings of the Competition and Markets Authority (CMA), the latest step in its investigation into the UK energy supply market.
The competition regulator, which is due to publish its full report by the end of the year, revealed today that the ‘big six’ energy suppliers – which also include SSE Group (LON:SSE), ScottishPower, E.On, EDF and nPower – had overcharged households by around £1.2 billion each year between 2009-2013.
According to the CMA, regulatory interventions made to simplify prices are not having the desired impact of increasing engagement among customers and had inadvertently limited the practise of discounting and reduced competition. The regulator, therefore, proposes that the retail energy market should be based on “clear principles that allow the benefits of competition to be gained and promote measures.” In addition, it will consider whether safeguards, such as a transitional price cap on the most expensive tariffs, will be needed to protect consumers until alternative measures contribute to a more competitive market.
Roger Witcomb, chairman of the energy market investigation, said: “There are millions of customers paying too much for their energy bills – but they don’t have to. Whilst competition is delivering benefits to increasing numbers of customers, mainly through the growth of smaller suppliers with cheaper fixed-price deals, the majority of us are still on more expensive default tariffs.”
Centrica’s chief executive, Iain Conn, responded: “We welcome the possibility that this review will have a constructive and positive influence on competition in the energy market. While we have questions and concerns about some of the proposals we look forward to engaging with the CMA in the next phase of this process.”
By 10:14 BST, Centrica’s share price had fallen 0.86 percent to 265.10p. Meanwhile, fellow FTSE 100-listed energy provider SSE was trading 0.89 percent lower at 1,560.00p.
As of 10:46 BST, Tuesday, 07 July, Centrica PLC share price is 265.30p.