12 November 2012 Last updated at 14:25 ET
Allegations of manipulation of UK wholesale gas prices are being investigated by the Financial Services Authority (FSA) and Ofgem.
The investigations by the FSA, the UK’s financial watchdog, and energy regulator Ofgem follow claims by a whistleblower.
Energy Secretary Edward Davey said he was “extremely concerned about the allegations”.
“The government takes alleged abuse in our markets very seriously,” he added.
Two of the UK’s big six energy suppliers have released statements to deny any involvement.
EDF Energy said it “does not participate in loss-leading trading activity and considers it to be against existing market regulation”.
It added: “We make information likely to impact market price formation publicly available on our website in compliance with the European Union’s regulation on energy market integrity and transparency.”
NPower said: “There is an explicit commitment in our code of conduct to comply with all laws and regulations.”
Mr Davey said he would keep in close contact with the two investigations.
He will make a statement on the issue in the House of Commons on Tuesday.
The whistleblower worked at ICIS Heron, a financial information company that publishes energy price reports.
ICIS Heron said it “detected some unusual trading activity on the British wholesale gas market on 28 September 2012, which it reported to energy regulator Ofgem in October”.
It added: “The cause of the trading pattern, which involved a series of deals done below the prevailing market trend, has not yet been established.”
BBC News – Business
Probe into alleged gas price fix
This article
Probe into alleged gas price fix
can be opened in url
http://newsterwatch.blogspot.com/2012/11/probe-into-alleged-gas-price-fix.html
Probe into alleged gas price fix
