1 min Read
14 Nov 2012

Written by Liam

Over 30 years experience in financial services, residential lettings and property sales. Director of a leading national estate agency chain, until leaving in 2008 to pursue other commercial interests. Vast experience in new business development, business change, management development and business strategy.

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Energy firms to be investigated after allegations of price fixing

Ofgem and The Financial Services Authority (FSA) are investigating claims of price fixing by the country's biggest energy companies. The claim was made by a whistleblower who reportedly works for ICIS Heren, a company specialising in energy analysis and setting benchmark prices for the industry.

It is claimed that suspicious trading of  gas prices took place on 28th September, at a time when information was being gathered to set the wholesale gas prices, these trades benefited the energy companies. Although concerns are only over  trades on 28th September the whistleblower feels that price fixing is widespread.

Energy companies buy gas at wholesale prices and sell it on to business and domestic users, this wholesale price is a major part of users overall bill.

The allegations come as a blow to the energy industry whose companies have suffered from low consumer confidence following continuing price rises. Five of the 'big six' have already announced price rises to effect this winter ranging from 6% (British Gas) to as high as 11% (EDF).

The body that represents the UK energy companies, Energy UK, said its members will co-operate fully with any investigation.

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Comments

  1. Derek Armstrong December 3, 2012 at 12:14 am

    Every one with a bit of sense knows energy companies are being allowed to profiteer and rip off the consumer.Why are they being allowed.Ofgem is a waste of time and money.It has been proved on Watchdog Television program.

  2. Noo Noo 39 November 14, 2012 at 8:37 pm

    Looking forward to the outcome of the investigation , so if it is revealed that price fixing has occurred , does that mean we can look forward to refunds on our energy bills , or is it a slap wrist for the energy firms who are made to promise not to do it again !!!