Today we publish our final report and accompanying Cornwall Energy report for our review of the effectiveness of competition in the Northern Ireland retail energy markets.
Protecting consumers is at the heart of the Utility Regulator’s (UR) role and working to deliver sufficient effective competition in the Northern Ireland (NI) energy market to protect customers is an integral part of our focus. Phase I of our review of the effectiveness of competition in the Northern Ireland Retail Energy Market assessed the state of competition in the NI energy markets and highlighted areas which may require intervention. It endorsed the maintenance of price controls on dominant suppliers as an appropriate regulatory response to market dominance.
This second phase of the review considers the regulatory options for the NI energy supply markets which could replace the status quo should the current form of price regulation cease. Cornwall Energy was commissioned by the UR to help develop a set of options for future price regulation of the NI market which could potentially be employed in the event that the current form of regulation is changed. These were consulted upon by the UR in December 2015, with the consultation period closing in March 2016. This paper represents the final UR position at this stage of market development. Stakeholder responses have been taken into account as well as the final findings of the CMA energy market review in GB.