Generators await MMC decision
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.SHARES in National Power and PowerGen fell sharply yesterday in advance of today's statement by Stephen Littlechild, director general of electricity supply, on whether he will refer the companies to the Monopolies and Mergers Commission, writes Mary Fagan.
The regulator has been in prolonged negotiations with the generators over electricity prices and the need for more competition in the generating market. Professor Littlechild, who had hoped to announce his decision by the middle of last month, believes that National Power and PowerGen have too much influence on prices in the electricity trading pool.
The companies have objected to demands by the regulator that they sell off plants to make way for more competition in generation. National Power has taken a strong stance on this issue, saying that it cannot be forced into 'distress' sales.
The length of time taken in discussions has increased speculation that all three parties are willing to compromise. An MMC reference would put paid to government plans to sell all or part of its 40 per cent stake in each of the generators in the near future, raising up to pounds 4bn.
Professor Littlechild has said that he would not rule out a reference of one company without the other, although analysts say that any MMC investigation in practice would have to cover the whole industry. National Power's shares fell by 12p to 461p. PowerGen fell by 17p to 525p.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments