CMA investigation to cost energy industry more than £80m

The two year investigation into the UK’s big six energy companies by the Competition and Markets Authority (CMA) has imposed an £80m burden on the industry, according to reports.

On Friday the CMA is set to publish a 500-page report, and according to The Times, it said the investigation cost them about £5m, including fees paid to external advisers and solicitors of about £440,000.

The investigation was to find out if the big six energy suppliers, SEE, Scottish Power, Centrica, RWE npower, E.ON and EDF Energy, were not providing adequate competition.

The total cost to the big and smaller energy companies is expected to be a lot higher, as dozens of energy suppliers expend time and effort dealing with the regulator, which cost will ultimately be met by consumers through energy bills.

Small energy suppliers claim to have spent over £1m on the investigation, including costs for legal and economic advisers.

The energy regulator Ofgem, Energy UK and fuel poverty campaigners also participated in CMA’s investigation.

Former Ofgem board member, Steve Smith told the BBC's Radio 4 on Thursday that the energy regulator is likely to be found as the main problem regarding competition rules.

“What we need to do is make sure we don’t get Ofgem’s rules replaced by some more silly rules by the CMA.”