Ofgem accuses PayPoint of breaching competition law

Ofgem said PayPoint has included exclusivity clauses in most of its contracts with energy suppliers and retailers, limiting their ability to use rival services, therefore excluding PayPoint’s competitors from the market.

The energy regulator claims PayPoint abused its dominant market position in the market for over-the-counter payment services for prepayment energy customers for at least the period running from April 2009 to October 2018.

Ofgem said: “At this stage of the investigation, our findings are provisional and no conclusion should be drawn that there has been an infringement of competition law at this stage. We will carefully consider any representations from the company before deciding whether the law has in fact been broken.”

The case will be considered by Ofgem’s Enforcement Decision Panel.

In response, PayPoint said it is “considering Ofgem’s provisional views set out in the Statement of Objections and will exercise its right to respond to Ofgem and present its case”.