Concurrency

Competition law is enforced in the UK principally by the OFT. In certain regulated industries, however, the sector regulators have 'concurrent powers' to apply and enforce the CA98 and Articles 81 and 82.

The following bodies have concurrent powers in respect of the respective areas:

• Office of Communications (Ofcom)  - communications
• Water Services Regulation Authority (Ofwat)  - water and sewage (in England & Wales)
• Office of Rail Regulation (ORR) - railways
• Gas and Electricity Markets Authority (Ofgem) - gas and electricity
• Northern Ireland Authority for Utility Regulation (NIAUR) - gas and electricity in Northern Ireland
• Civil Aviation Authority (CAA) - air traffic services

Concurrent jurisdiction under the Competition Act

In each area, OFT shares jurisdiction under CA98 with the concurrent regulator. The Competition Act 1998 (Concurrency) Regulations 2004 (SI 2004, No 1077) set out the process for determining which body is well placed to act in a particular case of an alleged breach of competition law.

Concurrency Working Party

The OFT and each concurrent regulator is represented on the Concurrency Working Party (CWP). The CWP was formed in 1997 to facilitate a consistent approach by the concurrent regulators and OFT in the exercise of their functions and powers under the CA98. It acts as a forum for the members to:

• consider the practical working arrangements for working between themselves
• discuss matters of common interest (and potentially best practice) and share information (where appropriate and where legally permitted), and
• coordinate the provision of advice and information on the application of CA98 and Articles 81 and 82.

The CWP meets about six times a year, under the chairmanship of the OFT. The Postal Services Commission (Postcomm), while not sharing concurrent powers, attends CWP meetings as an observer.

DTI/HMT Report on Concurrency

In May 2006, the Department of Trade and Industry and HM Treasury published their report Concurrent Competition Powers in Sectoral Regulation. This made a number of recommendations to improve the concurrency system.

In response to the recommendations, the CWP has taken forward a number of initiatives, including:

• the use of working groups in areas of common interest (for example, Working Groups have been set up in respect of Procedural Issues and Litigation Issues)
• a revitalised CWP website to assist in information sharing between CWP members, and 
• the OFT to report to the Joint Regulators Group on an annual basis, providing an overall view about whether competition law is being applied consistently and proactively across all sectors.

Responses to DTI/HMT Report

House of Lords Select Committee inquiry into the role of economic regulators

In November 2006, a House of Lords Ad Hoc Committee was formed to investigate the role of regulators. Its aim was to investigate the working methods and effectiveness of the UK's major economic regulators (including the members of the CWP). Through its inquiry, the Committee sought to consider the impact of regulators on competition within their industry and on the UK economy's effectiveness internationally.

Having issued a call for evidence in December 2006, the Committee proceeded to receive oral evidence in early 2007. An additional call for evidence was made in April 2007.

For further information see the Select Committee's website, which includes copies of written evidence and transcripts of oral evidence.

Further information

Publications - concurrency-related guidelines

Concurrency CA98 Public register - decisions issued by concurrent regulators

Back to: Competition Act 1998