CMA Chooses ICIS Data to Improve UK Energy Markets
LONDON, December 8, 2016
The UK’s Competition and Markets Authority (CMA) has confirmed its selection of data from ICIS to calculate its price cap for prepayment customers. The price cap is one of the most high-profile measures introduced as part of the CMA’s two-year investigation into Britain’s energy markets.
The cap regulates the amount that suppliers can charge customers on prepayment tariffs out to the end of 2020. The CMA expects the price cap to reduce bills for the 4 million customers in this sector by £300 million a year.
Rob Kolkman, Managing Director at ICIS, said: “The Competition and Markets Authority’s choice of ICIS data reflects its quality and its widespread usage amongst both regulatory bodies and industry participants. As the most trusted provider of real UK wholesale energy market data, our price references will help to ensure the UK markets function effectively for all stakeholders.”
The CMA chose to use price assessments from leading energy market intelligence provider ICIS to calculate wholesale energy prices, to ensure that the price cap reflects the real cost of supply to these customers. The cap will be updated every six months to reflect changing market conditions.
The CMA’s investigation into the functioning of the UK’s energy markets began in 2014. The price cap will be in place from 1 April 2017.