FE Research and News

Watchdog to signal all-ok in energy sector

Mon 6 Jul, 2015 / by Tahmina Mannan

“The Competition and Markets Authority is expected to say this week that it will not force the Big Six energy firms to break up, and that the vertical integration structure under which the Big Six operate does not result in higher prices. The announcement is to follow after a year-long review which was fuelled by the significant increases seen in energy bills over the past few years.

 

“The competition watchdog is also expected to encourage consumers to shop around and switch providers, while loosening the regulation around doorstep selling.

 

“For investors of the Big Six energy companies, consisting of British Gas, Scottish Power, EDF Energy, Eon and RWE Npower - this will no doubt be welcome news.

 

“British Gas and Scottish Gas, two of the biggest names in the UK market, are owned by FTSE 100-listed Centrica.

Buyers looking to add Centrica to their holdings, but without taking on the risk associated with holding a single stock itself, the Threadneedle UK Equity Alpha Income fund is one good option.

 

“Centrica makes up 4.3% percent of the five FE Crown rated fund’s holdings. FE Alpha manager Leigh Harrison alongside Richard Colwell manage the fund which has consistently outperformed the IA UK Equity Income sector over the past three years.

The fund typically holds a small number of investments compared with other funds, and focuses mainly on UK companies or companies that have significant operations in the UK.”

 

Please attribute comment to Mika-John Southworth.

Topics: News of the day

Tahmina Mannan

Written by Tahmina Mannan