Energy firms warned they risk jail if they rig wholesale prices
INDIVIDUALS found guilty of rigging wholesale energy prices could face up to two years in jail, under new government reforms proposed today. Under the new laws, it would be a criminal offence to fix the price of energy or use insider information to unfairly influence the market.
“Manipulating the energy market is absolutely unacceptable, and these proposals provide a much stronger deterrent – more in line with the approach taken in the financial markets,” said energy secretary Ed Davey, who first outlined the reforms in his statement last November.
Under the current rules, regulator Ofgem can investigate and fine people found to be manipulating the energy market, but this is the first time it will become a criminal offence.
“We want the strongest possible deterrents in place to guard against market manipulation and insider trading,” said Rachel Fletcher, senior partner for markets at Ofgem. “We put forward the case to government for greater powers to take action if needed, and we welcome this consultation.”
Ofgem would not disclose how many people have already been investigated or fined.
Last week the Competition and Markets Authority confirmed that it would probe competition in the retail energy market, which could potentially lead to the big six suppliers being broken up.