U.K.’s Big Six Utilities Face Competition Probe
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A decision by the U.K. energy regulator to investigate the utility industry threatens to delay investment in power generation in the next four years, adding to the risk of blackouts around the time of the next election.
Regulator Ofgem has asked the Competition and Markets Authority to start an inquiry that may force a breakup of utilities’ operations, a process that will take at least 18 months. Companies may be reluctant to invest in infrastructure while the investigation runs, creating an unavoidable “capacity crunch,” according to Liberum Capital Ltd.