What has changed?

The Energy Act 2023 introduces a new UK merger control regime under which all mergers between energy network companies active in the UK can be assessed for their impact on Ofgem’s ability to make comparisons between energy networks. Transactions can be blocked/unwound where such impact is found to be prejudicial.

This new requirement sits alongside both the current UK merger control regime essentially scrutinising whether transactions result in a “substantial lessening of competition” and the government’s power to review transactions in the energy sector under the National Security and Investment Act 2021.