Chris Huhne, UK Energy Secretary, has recently taken some time for a Q&A session in today’s Financial Times. When we at Torse found out about this arrangement, we jumped at the chance to ask the Coalition Governments energy expert a question or two, here’s how it went:

Torse question:

Splitting up the “big six” power companies.

Given that the UK energy market (gas and electricity) is now effectively controlled by an oligopolistic “big six”, might now be the time to consider splitting energy suppliers from their upstream parents, to protect the UK’s fragile economy from continuing (and developing) exploitation?

Mark T Johnson, Managing Director, Torse

Chris Huhne Answer:

Ofgem’s primary duty remains the protection of consumers, and that means ensuring proper competition in the energy market. That’s why the regulator announced a review of the effectiveness of the retail energy market to see if further action is needed to protect consumers following the recent announcements of price increases by four out of the six main energy suppliers. Ofgem is also reviewing the state of wholesale power market liquidity due to concerns that there are barriers to new entrants to the generation and supply markets. It will report on both these review in the first half of 2011.

Whilst, understandably Torse didn’t quite get the full response desired, we remain keen and interested to review the full report as and when it is released.

To read the full Q&A session please click here.