An investigation into the energy market is to be carried out by the Competition Markets Authority (CMA).

Ofgem referred the probe to the CMA following a consultation.

Dermot Nolan, Ofgem Chief Executive, said:  "Now is the right time to refer the energy market to the CMA for the benefit of consumers. There is near-unanimous support for a referral and the CMA investigation offers an important opportunity to clear the air. This will help rebuild consumer trust and confidence in the energy market as well as provide the certainty investors have called for.

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"The energy market is also going to change rapidly over the next few years with the roll-out of smart meters, the government's electricity market reforms, and closer integration with European energy markets. A CMA investigation should ensure there are no barriers to stop effective competition bearing down on prices and delivering the benefits of these changes to consumers."

the CMA is to begin its investigation immediately and the final decisions are to be published by the end of next year.

(CD/MH)