Energy weekly highlights—6 June 2019

This week’s edition of Energy highlights includes the Office of Gas and Electricity Markets’ (Ofgem) review into whether the introduction of the cap on default and standard variable tariffs has impaired competition and its consultation on Scottish Hydro Electric Power Distribution’s (SHEPD) proposals to contribute to planned transmission links to Shetland, Western Isles and Orkney. We also cover the launch of guidance in relation to the Department for Business, Energy and Industrial Strategy’s (BEIS) new Rural Community Energy Fund (RCEF) and the Oil and Gas Authority’s (OGA) award of licences under the 31st Offshore Licensing Round. We provide updates on new content and look at some key upcoming dates for the diary over the next few weeks.

Electricity and gas market regulation and licensing 

Ofgem open review into whether tariff cap has impaired competition

Ofgem has opened a consultation into whether conditions are in place for effective competition in the domestic energy retail market. Ofgem seek stakeholders’ opinion as part of their review into whether the introduction of the cap on default and standard variable tariffs has had an impact on the conditions for effective competition. Under Domestic Gas and Electricity (Tariff Cap) Act 2018, Ofgem is obliged to review whether the introduction of the cap has had such impact or not by 31 August 2020, including a recommendation on whether the cap should remain in place for 2021. The consultation runs until 9 July 2019. See: LNB News 30/05/2019 34.

Ofgem: E Gas and Electricity, Economy Energy and Dyball Associates fined £870,000 for breaching competition law in relation to the supply of gas and electricity to domestic customers

On 30 May 2019, Ofgem announced that two suppliers, E (Gas and Electricity) Limited and Economy Energy, and energy software and consultancy service, Dyball Associates, have been collectively fined £870,000 for infringing Chapter I of the Competition Act 199