Ofgem finds effective competition in meter reading

Ofgem decision (28 pages, PDF) that EDF Energy has not infringed Article 82 or the Competition Act 1998 by withdrawing meter data collection and data aggregation services from other electricity suppliers since 2005.

Ofgem identified potentially separate relevant markets for data retrieval (reading of household and similar electricity and gas meters), data processing (for electricity data), and data aggregation (for electricity settlement). In each case, Ofgem considered that providers in one part of the country would exert effective competitive constraints on the supply of the service elsewhere in Great Britain (at least in neighbouring regions in the case of meter reading). On that basis Ofgem found that EDF did not have a relevant dominant position.

Ofgem also argues that it is "logical for prices to reflect the density of the meter population", and therefore that nothing follows from the complaint from electricity suppliers and Energywatch that meter reading charges had increased as a result of EDF's decision to stop supplying meter reading services in areas where it was the incumbent provider.

Notes, May 2007: This document did not survive Ofgem's website changes. The link of this item now points to the decision found on the OFT site, which has different metadata but appears otherwise identical to the Ofgem version. Ofgem's version was in fact published two days after the OFT's version, and we originally pointed to the OFT version; but OFT messed up its own website a month after publishing this decision, so we switched to pointing to Ofgem's version, before being forced to switch to the OFT's new location when Ofgem lost the document in its site changes.

For further information or advice please contact Franck Latrémolière.

Filed under Article 82, Electricity, Ofgem.

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