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Off-grid energy study

Start date: 15 March 2011 (following a consultation on scope on 25 January 2011)
End date: 21 December 2011 

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Purpose of the study

The aim of this study is to examine whether the market for the supply of energy to the 4 million households who are not connected to the mains gas grid is working well for these consumers. See full details of the scope of the market study (pdf 273kb).

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Final report

The OFT published its final report on Off-grid Energy on 18 October 2011.

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Outcome

The OFT has consulted on its provisional decision to not make a market investigation reference of the retail supply of heating oil to domestic customers in the UK to the Competition Commission ('the CC'). We received eight responses relevant to the consultation and have carefully considered these. However, the issues raised during the consultation had been addressed in our market study report and no new evidence or information has been received as a result of the consultation that gives us reason to change our view that the reference test set out in section 131 of the Enterprise Act 2002 is not met. The OFT has therefore decided not to refer the retail supply of heating oil to domestic customers in the UK to the CC

Downloaded a copy of our final decision (pdf 185kb).

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Related documents

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Contacts

Team leader: Hsiu Min Lim (020 7211 8352, hsiumin.lim@oft.gsi.gov.uk)

Project director: James MacBeth (020 7211 8958, james.macbeth@oft.gsi.gov.uk)

Senior responsible officer: Mary Starks (020 7211 8307, mary.starks@oft.gsi.gov.uk)

Media enquiries: any media enquiries should be directed to a member of our Press Office.

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Confidentiality/Data use statement

Please note that we may choose to refer to comments received in any submission in our published findings. In deciding whether to do so, we will have regard to (among other considerations) the need for excluding from publication, so far as that is practicable, any information relating to the private affairs of an individual or any commercial information relating to a business which, if published, might, in our opinion, significantly harm the individual's interests or, as the case may be, the legitimate business interests of that business ('confidential information').

If you consider that your submission contains such information, that information should be marked 'confidential information' and an explanation given as to why you consider individual items or categories of information to be confidential. Blanket requests for confidentiality or those that are not supported by reasons will not be accepted.

The OFT reserves the right to disclose any information provided by you (including confidential information) for the purposes set out in sections 170 (note 1 below) and 240 to 243 (note 2 below) of the Enterprise Act 2002. Prior to any such disclosure, the OFT would have regard to (among other considerations) the need for excluding, so far as that is practicable, any confidential information.

The OFT is also subject to information disclosure duties under the Freedom of Information Act 2000 (the 'FoIA'). Where a person makes a request in accordance with the FoIA, the OFT may have to disclose whether it holds the information requested as well as the information itself (including confidential information). The FoIA contains exemptions (including one which may exempt confidential information) from the requirement to make disclosure. If you consider that any information you provide may be exempt from such disclosure (for example, you consider it is confidential information) you should say so and explain why.

Finally, to the extent that information you provide constitutes personal data under the Data Protection Act 1998, the OFT will process such data in accordance with that Act.

Further background information on the disclosure of information obtained during a market study is provided in the OFT's published guidance, 'Market studies' OFT 519 (pdf 586kb), June 2010, in particular at paragraphs 4.23 to 4.24.

NOTES

  1. Section 170 of the Enterprise Act 2002 sets out general information duties on the OFT to provide information to the Competition Commission, the Secretary of State, or the appropriate Minister in relation to the Market Investigations provisions of Part 4 of that Act.
  2. Sections 240 to 243 of the Enterprise Act 2002 set out a number of permitted gateways for disclosure, including, for example, disclosure for the purpose of facilitating the exercise of a statutory function. Section 239 provides that disclosure is permitted where the requisite consent is obtained as set out in that section.
  3. Under section 131(1) of the Enterprise Act 2002, the OFT may make a reference to the CC if it 'has reasonable grounds for suspecting that any feature, or combination of features, of a market in the United Kingdom for goods or services prevents, restricts or distorts competition in connection with the supply or acquisition of any goods or services in the United Kingdom or a part of the United Kingdom.' The OFT will make a reference to the CC only when the reference test set out in section 131 of the Enterprise Act 2002 is met, and when, in its view, each of the following criteria has been met:
  • it would not be more appropriate to deal with the competition issues identified by applying the Competition Act 1998 or using other powers available to the OFT or, where appropriate, to sectoral regulators
  • it would not be more appropriate to address the problem identified by means of undertakings in lieu of a reference
  • the scale of the suspected problem, in terms of its adverse effect on competition, is such that a reference would be an appropriate response to it, and
  • there is a reasonable chance that appropriate remedies would be available.




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