SSE plc Response to CMA Statement of Issues
SSE plc has today (14 August 2014) submitted its response to the Statement of Issues relating to the supply and acquisition of energy in Great Britain published by the Competition and Markets Authority on 24 July 2014.
In its response published as an Executive Summary here, SSE confirms its appetite for reform that gives customers confidence, allows regulators to regulate and encourages investors to invest in the Great Britain energy market.
The response addresses each of the CMA’s four potential Theories of Harm in turn, highlighting that many features of the GB energy markets are functioning well and benefitting customers through effective competition. In addition there are significant market reforms that have only recently been introduced which should have a positive impact upon GB energy markets.
In its response SSE has also highlighted specific areas where it believes there may be potential for reforms that produce additional benefits for competition and customers. These include: examining whether the Carbon Price Floor could be reformed to improve longer term liquidity; continuing to build transparency around financial reporting; lowering and simplifying customer bills by paying for Government policy through taxation; reviewing regulations that complicate bills and tariffs; and examining whether the different regional costs of transporting electricity could be passed on to suppliers as one national charge to make price comparisons easier.
SSE agrees with the summary of many stakeholders’ views included in the CMA’s Statement of Issues: that an independent, authoritative market investigation will help to address key issues and begin to restore the confidence of both customers and investors.
Alistair Phillips-Davies, Chief Executive of SSE, said:
“The Great Britain energy market is highly competitive but SSE continues to have an appetite for reforms that further benefit customers. For example, we believe that reviewing and amending energy bill regulations so that customers’ bills are simpler or taking Government policy costs off those bills are two possible reforms that could benefit customers. Over the coming few months SSE will keep trying to ask the right questions and remains committed to trying to find the right answers for our customers in an open and transparent way.”
UPDATE 13/10/14: Read SSE's full response to the CMA Issues Statement.
An additional blog by Richard Westoby, Director of Retail Economics has been posted here.
Sally Fairbairn - Director of Investor Relations +44 (0)845 0760 530
Brian Lironi - Head of Media +44 (0)845 0760 530