Centrica Faces UK Competition Review

The U.K. energy regulator Ofgem feels Centrica's planned acquisition of the Rough undersea gas storage facility may hurt competition. "Ofgem's initial view (is) that the transaction might be detrimental to competition in the gas and electricity supply markets," the regulator said in a statement.

Centrica signed a deal on November 14th to acquire the asset from Dynegy for US $304 million. Ofgem issued a consultation on the transaction and also requested replies address whether the impact on competition can be addressed by undertakings to be agreed between Centrica and the government. Responses to the consultation are due by December 11th.