CMA Energy Market Investigation


On 26 June 2014, Ofgem referred the GB energy market to the Competition and Markets Authority (CMA).

The CMA then identified a number of adverse impacts to competition and issued the following regulation to address these market inefficiencies.

As a result, two orders were given.

The Energy Market Investigation (Microbusinesses*) Order 2016

In a nutshell:
As of 26 June 2017

  • All energy suppliers must make prices available to businesses which consume under 73,200kWh of gas and 50,000kWh of electricity (with any meter point in profile class 1-4). Suppliers will host these either on their own website, or on a Third Party Intermediary (TPI) 'price comparison' website.

  • Microbusinesses on a contract that automatically rolls over can end the contract at any point after it has rolled over without incurring a termination fee. Also, once it has rolled over, the contract must not exceed 12 months.

The Energy Market Investigation (Database) Order 2016

In a nutshell:

  • Energy suppliers must identify microbusiness customers who have been on default contracts for more than three years and provide the customer data to Ofgem on a monthly basis.

  • Ofgem will make a database of 'disengaged customers**' available to energy suppliers on 30 April 2018. Customers on the database can be approached by suppliers and offered a more competitive price.

  • Protecting the privacy and security of customer data remains a priority.
    Ørsted will let customers know what information will be included on the database and how they can opt out.

Where can I find more information?
More information about CMA Energy Market Investigation and the Orders can be found on their website.

*A microbusiness is defined as a business which: a) Consumes no more than 293,000kWh of gas or 100,000kWh of electricity each year; or b) Has fewer than ten employees and an annual turnover not exceeding €2m

**Disengaged customers: Microbusiness customers who have been on a default contract for more than 3 years.