The MMC’s PacifiCorp report and the decision by Margaret Beckett not to refer Texas’s bid for Eastern to the MMC has clarified that foreign bids for RECs are not expected to raise regulatory concerns. This would not necessarily be the case in deals involving increased vertical integration in the industry, or common ownership of two or more RECs.

Attention is now focusing on the proposal to separate the licensing of distribution and supply, whilst other players in the industry, notably PowerGen and ScottishPower, are reported to be setting their sights on expansion through deals in the US.

Alex Potter
Freshfields
London