No Manipulation in UK Gas Markets, Say Ofgem-FCA

UK gas markets have not been manipulated by price reporting agencies, stated Ofgem and the Financial Conducts Authority (FCA) as reported in a note released by the Department of Energy & Climate Change.

“Ofgem and the FCA have conducted a rigorous review and have not found evidence of market manipulation in this case,” Secretary of State Edward Davey said in the note released on Thursday.

Last autumn, the government was notified of allegations that the UK gas market had been manipulated by price reporting agencies. The investigation of the Ofgem was triggered by the disclosures to the Guardian by Seth Freedman, a whistleblower from the ICIS-Heren PRA. 

The two regulators, Ofgem and the Financial Conducts Authority (FCA) have reviewed the situation and have concluded that they could find no evidence of market manipulation.

Nonetheless, Davey said that the government would introduce measures to control eventual uncompetitive behaviours.

“We’re introducing annual competition reviews to make sure the energy market is operating properly, and we’re proposing to introduce criminal sanctions for manipulation of the energy markets,” added the Secretary of State. 

Last July, Ofgem acquired new powers to protect wholesale gas and electricity markets from abuse.