UK Law and Practice Contributed by: Tom Sprange KC, Andrea Stauber, Martina Antosova and Lucy Pearson, King & Spalding International LLP
1.5 Central Planning Authorities Ofgem regulates the electricity and downstream gas industries within Great Britain. Its powers are set out in the: • Gas Act 1986; • Electricity Act 1989; • Energy Act 2004, Energy Act 2008, Energy Act 2010, Energy Act 2011 and Energy Act 2023; • Electricity and Gas (Market Integrity and Trans- parency) (Enforcement etc) Regulations 2013 (SI 2013/1389); and • Domestic Gas and Electricity (Tariff Cap) Act 2018. Ofgem’s principal duty is to protect the interests of gas and electricity consumers. Ofgem is governed by GEMA. For details of the concurrent powers Ofgem shares with the CMA, please see 2.5 Surveillance to Detect Anti-Competitive Behaviour . Northern Ireland has its own national regulatory authority, the NIAUR (see 1.4 Sale of Power Indus- try Assets ), which works in close co-operation with Ofgem. Ofgem is responsible for the process of accrediting renewable energy installations and issuing Northern Ireland Renewable Obligation Certificates (NIROCs) to generators in Northern Ireland. • Competition Act 1998; • Enterprise Act 2002; • Utilities Act 2000; In Great Britain, NESO is responsible for ensuring the stable and secure operation of the national electricity transmission system (NETS), including the adequacy of supply to satisfy the demand for electricity. BEIS, the UK government department that previously oversaw the energy sector, was dissolved in early 2023. The Department for Energy Security and Net Zero (DESNZ) assumed the role of managing Brit- ain’s long-term energy supply, with a special focus on meeting net zero targets. The Financial Conduct Authority (FCA) monitors and enforces financial regulation across the commodities markets, including the energy markets. Ofgem and the FSA first put co-operation arrangements in place in 2002. Ofgem is the principal regulatory authority for
expanding the powers of the CMA and significantly altering the merger control and antitrust investigation processes.
Regulator and Approval Process Competition and Markets Authority
The CMA was established under the Enterprise and Regulatory Reform Act 2013 and is the body in charge of competition regulation and enforcement in the UK. The CMA studies the function of competition in the UK’s energy market as a whole and can initiate tar- geted investigations based on its findings. The CMA may commence a review of a merger on its own initiative or following a formal notification being made by the businesses. The CMA has a statutory deadline of 40 working days in which to complete the first phase (Phase 1) of its merger review process. If the CMA determines that the merger has a realistic prospect of substantially decreasing competition, it will begin an in-depth assessment, which is generally limited to 24 weeks (Phase 2). Parties may offer to alter aspects of the transaction in order to mitigate any competition risks that were identified. Please see 2.4 Market Concentration Limits for details of the circumstances in which the CMA has The Gas and Electricity Markets Authority (GEMA), a panel of independent experts appointed by the Sec- retary of State, has concurrent authority with the CMA on the application and enforcement of certain compe- tition rules in the energy sector. Northern Ireland Authority for Utility Regulation The Northern Ireland Authority for Utility Regulation (NIAUR) is an independent government department that promotes effective competition in the market of Northern Ireland. It enforces the prohibitions in the Competition Act 1998 and can make market investi- gation references to the CMA under the Enterprise Act 2002. The NIAUR and the CMA work together under the terms of a memorandum of understanding. the jurisdiction to examine a merger. Gas and Electricity Markets Authority
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