Energy Bill: CMA recommendations and DECC response
Published 25 November 2016
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This publication is available at https://www.gov.uk/government/publications/cma-recommendations-to-government/energy-bill-cma-recommendations-and-decc-response
This is a summary of the CMA’s recommendations to ministers in relation to competition issues in the Energy Bill. See the correspondence page for the CMA’s full letter of 3 December 2015.
| CMA recommendation | Government response |
|---|---|
| 1. The government should consider how to ensure that the Oil and Gas Authority (OGA) does not inadvertently facilitate the exchange of sensitive information or the formation of anti-competitive agreements between competitor firms or among industry parties. | “[T]he Government and the OGA will, through policies, guidance and consultation as appropriate, take steps to ensure that any agreements with which it is involved do not include anti-competitive elements, and that exchanges of sensitive information which would be prohibited by competition law are avoided.” |
| 2. Even when agreements do not create legal risk, the benefits arising from agreements should outweigh any restrictions on competition. The government should consider how to ensure that the OGA conducts such an assessment of agreements of which it becomes aware wherever necessary. | “[A]s part of the Sponsorship arrangements we will be seeking assurances that the OGA is considering the competition law and the wider competition aspects of proposed agreements or collaborations with which it is involved.” |
| 3. The government should ensure that the ways in which the OGA exercises its powers, including for example its licensing conditions and processes, have a pro-competitive impact in relevant markets. | “The OGA will also continue to foster and encourage competition within the oil and gas industry, primarily through the licensing rounds which are run as a competition process.” |
| 4. The government should ensure that the OGA considers whether and how market incentives and mechanisms can be used in pursuit of its objective to maximise economic recovery. | “The OGA will also consider how other competition and market incentives could be used to contribute to maximising economic recovery at other stages of the development and exploration cycle.” |