CMA consults on stronger commitments to improve access to road fuels market in the Western Isles
22 May 2014 10:56 AM
The CMA has today launched a short consultation
on changes to the commitments originally proposed by Certas Energy UK Ltd
(‘Certas’) to improve competition in the supply of petrol and
diesel to filling stations in the Western Isles of
Scotland.
The
CMA (and previously the Office of Fair Trading) has 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.
The
OFT announced in March 2014 that it was consulting on commitments proposed by
Certas that were designed to address its competition concerns. The CMA has
engaged with Certas on the substantial number of comments received in response
to the consultation and as a result the company has offered to make the
following changes to the commitments:
- The
proposed throughput arrangements for the Stornoway terminal will last five
rather than just two-and-a-half years (starting on 1 June 2015 and ending on 31
May 2020);
- An
additional commitment that ensures the costs of operating the terminal will
apply equally to Certas and its competitors to ensure a level playing
field.
The
CMA is minded to accept modified commitments that incorporate these changes,
and is inviting interested third parties to comment.
Ann
Pope, CMA Senior Director, Anti-Trust, said:
We
believe that these revised commitments have the potential to help rival fuel
distributors to enter the market and to compete with Certas for the supply of
road fuels to Western Isles filling stations on a long-term
basis.
Any
person wishing to comment on the proposed modifications to the commitments
should submit their views to the CMA by 5pm on 4 June 2014 to:
Western Isles Fuel Commitments Consultation
Competition and Markets Authority
Victoria House
Southampton Row
London WC1B 4AD
WIFCConsultation@cma.gsi.gov.uk
Notes
- You
can see all updates on this case on the project webpage.
- The
Competition Act 1998 empowers the CMA to accept such binding commitments from
parties under investigation as it considers appropriate to address the
CMA’s competition concerns. Where the CMA proposes to accept the
commitments offered, it will consult those who are likely to be affected by
them and give them an opportunity to give the CMA their views. Where the
parties to the investigation subsequently offer revised commitments which
include modifications which the CMA considers to be material, the CMA will
allow another opportunity for any interested third parties to express their
views. The CMA will take any representations of third parties into account
before taking a final decision on whether or not to accept the proposed
commitments as modified.
- When the CMA has formally accepted commitments, it must
close its investigation into the agreements that were the subject of the
investigation. The CMA may re-open its investigation and take other action in
certain limited circumstances (for example, where it has reasonable grounds for
believing that there has been a material change of circumstances since the
commitments were accepted).
- Any
decision by the CMA accepting binding commitments will not constitute a
determination as to the legality or otherwise of the conduct by the parties
under investigation either prior to acceptance of the commitments or once the
commitments are in place.
- 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 CC and the competition and certain consumer functions of the
OFT, as amended by the Enterprise and Regulatory Reform Act
2013