Liberum Utilities Analyst Peter Atherton appeared on last night's BBC Newsnight current affairs programme to discuss the implication of Ofgem's referral of the energy utility sector to the Competition and Markets Authority.
CLICK HERE >> to see the clip (Ofgem segment starts at 11:42, Peter Atherton's remarks on Ofgem start at 15:00. Overseas viewers may be unable to use the BBC's iPlayer platform).
CLICK HERE >> to read Peter Atherton's full commentary on the Ofgem decision.
"As expected Ofgem today initiated a referral of the energy utility sector to the Competition and Markets Authority (CMA). However the reasons given by Ofgem for the referral were flimsy at best. Indeed, Ofgem's report seems to describe a market where competition was working. And Ofgem's decision to refer the sector before its own extensive reforms have had the opportunity to work is bizarre We can only conclude that Ofgem has responded to political and media pressure to be "seen to do something". Whilst understandable, Ofgem's action will inevitably damage its own credibility and indeed the credibility of independent economic regulation in the UK."
Below: Peter Atheron, Liberum Utilities Analyst