Ofgem may drop competition probe into electricity spot trader

Ofgem said it plans to close an investigation into a power exchange company which faced allegations of breaking competition rules.

Competitor Nord Pool had been shut out of electricity auctions designed to sell energy across the British and Irish border by rival Epex Spot.

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Ofgem said that Epex’s failure to enable Nord Pool’s participation in the auctions is “likely to have distorted competition.”

“Any such distortion has the potential to lead to an increase in fees or a reduction in service or choice for customers using the power exchange and ultimately worse outcomes for energy consumers,” the regulator said in a statement.

Without admitting wrongdoing, Epex agreed to a series of measures that Ofgem believes will fix the issues.

It will take steps to allow Nord Pool access to the auctions, while agreeing to review its competition law training for staff.

“We welcome the opportunity to participate fully in the GB – Ireland market coupling, which we have always recognised as being highly significant for increased social welfare and security of supply in the island of Ireland,” a spokesperson for Nord Pool said.

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Epex stressed that it “does not consider itself to have infringed competition law” and said it will “fully cooperate with Ofgem on this and is committed to finding the best solution for the market.”

Ofgem is consulting on the measures, and will make a decision later this month. It signalled that it is minded to close the investigation.