Lamport Bassitt Solicitors - Legal News - Ofgem calls for changes to merger rules


	LATEST LATEST LEGAL NEWS ARCHIVE		LATEST NEWS & EVENTS Ofgem calls for changes to merger rules Ofgem has made calls for changes in rules concerning mergers. It suggested that the amalgamation of firms could impede its ability to regulate the energy industry effectively. The organisation noted that while some mergers can benefit consumers, a fall in the number of businesses operating in the sector would make it more difficult to cultivate efficiencies and improve services. According to the body - which aims to protect gas and electricity consumers, as well as secure the UK's energy supplies and promote sustainable development - this potential problem should be taken on board. It said: "Ofgem supports legislative change to require the merger authorities to take this factor into account when assessing mergers, as is the case in the water sector." The regulator also noted that it would no longer seek to reduce allowed revenues by a pre-determined amount in the wake of a tie-up, but rather would set rates for firms to share cost savings with customers. Related Articles: 22/9/2011 - Manufacturers targeting strategic acquisitions to drive growth 21/9/2011 - Mergers and acquisitions rule changes take effect 14/9/2011 - Govt wants to make London a 'legal hub' for the world 12/9/2011 - ICB banking reforms: banks set to be given until 2019 to prepare 8/9/2011 - Banking reforms in danger of being 'watered down' More Corporate Law News