London Prepared to Take Action on Gas Price-Fixing, Minister Says

A British government minister has told Parliament that energy regulators could be given stronger powers, in the wake of allegations of a price-fixing scandal.

Energy Secretary Ed Davey said the coalition government would act on wholesale natural gas trading if the claims were true.

Mr Davey said Ofgem, the energy regulator, would be consulted as to whether new and stronger powers were needed. In the House of Commons, he said market abuse was “always wrong” and acknowledged the likely public backlash should the claims prove correct. “At a time when people are companies are struggling with high energy bills, the country would expect us to take firm action if these allegations prove true, and we will,” he said in a statement also posted on his website.

The Financial Services Authority (FSA) is investigating claims last month byprice-reporting company ICIS Heren that “unusual trading activity” may have affected gas prices, according to a statement yesterday. 

“I don’t think it’s possible to exaggerate how serious this would be if this turns out to be true,” deputy prime minister Nick Clegg said today in an interview on Sky News. “At this time of year gas is one of people’s biggest bills."

See earlier story: Regulators Probe UK Natural Gas Market