The CMA has today accepted binding commitments
from Certas Energy UK Limited (Certas) and DCC plc which aim to improve
competition in the supply of petrol and diesel to filling stations in the
Western Isles of Scotland.
The
commitments bring an end to contracts which provided for many filling stations
on the islands to buy fuels exclusively from Certas for 5 years. Filling
stations will now have greater flexibility to choose whether or not they
purchase fuels from Certas, and the terms of those
arrangements.
The
commitments will also open up access to Certas’ marine terminals at Loch
Carnan in South Uist and Stornoway in the Isle of Lewis to potential
competitors for 5 years.
The
Competition and Markets Authority (CMA) (and previously the Office of Fair
Trading (OFT)) had been investigating a possible infringement of competition
law in the islands, relating in particular to the contractual arrangements
between Certas and certain filling stations for the wholesale supply of road
fuels.
Following acceptance of the commitments, the CMA has now
closed its investigation.
Ann
Pope, CMA Senior Director of Antitrust Enforcement, said:
We
are extremely pleased to have secured these commitments from Certas, which
offer a real opportunity for rival fuel distributors to enter the Western Isles
market on a long-term basis.
This should ultimately help make fuel prices more
competitive and benefit people and businesses in the islands.
Notes for editors
- Full details of this case, including a link to the
CMA’s commitments decision, can be found on the project webpage.
- The
OFT and the CMA carried out 2 public consultations, in March 2014 and May 2014,
to seek the views of interested parties on the proposed commitments. Following
the first consultation, certain changes were made to the commitments. Most
significantly, the length of time that competitors will have access to the
Stornoway marine terminal was extended from 2 and half years to 5
years.
- The
CMA is the UK’s primary competition and consumer authority. It is an
independent non-ministerial government department with responsibility for
carrying out investigations into mergers, markets and the regulated industries
and enforcing competition and consumer law. From 1 April 2014 it took over the
functions of the Competition Commission and the competition and certain
consumer functions of the OFT, as amended by the Enterprise and Regulatory
Reform Act 2013.
Photo above by Windy_ on Flickr. Used
under Creative
Commons, photo resized.