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13/11/2012
Investigation Underway Into Allegations Of Gas Price-Fixing
Regulators have launched an investigation into claims that wholesale gas prices have been manipulated.
Energy secretary Ed Davey has said he is, "extremely concerned about the allegations".
The investigations by the Financial Services Authority (FSA) and Ofgem were launched following claims by a whistle-blower.
All of the UK's big six energy suppliers have released statements denying any involvement.
The wholesale gas market includes everything from the UK's own North Sea gas supplies, to gas from Norway or elsewhere, or arriving in the UK by ship as LNG, liquefied natural gas.
The alleged manipulation is said to have reduced the wholesale price and, as such, does not imply any knock-on impact on the retail price paid by customers.
The whistle-blower, Seth Freedman, worked at ICIS Heren, a financial information company that publishes energy price reports.
He said even though this alleged instance may have not added to customers' bills, it was still damaging: "There's certainly a link. They [the power companies] are telling you: Look, in order to make our profits and cover our costs and so on, we have to give a price to retail customers which reflects the cost to us.'
"But if you can't trust the market at a wholesale level, it becomes a crisis of confidence. People at retail level are just thinking, 'I don't trust these companies' - and it needs to be scrutinised."
(H)
Energy secretary Ed Davey has said he is, "extremely concerned about the allegations".
The investigations by the Financial Services Authority (FSA) and Ofgem were launched following claims by a whistle-blower.
All of the UK's big six energy suppliers have released statements denying any involvement.
The wholesale gas market includes everything from the UK's own North Sea gas supplies, to gas from Norway or elsewhere, or arriving in the UK by ship as LNG, liquefied natural gas.
The alleged manipulation is said to have reduced the wholesale price and, as such, does not imply any knock-on impact on the retail price paid by customers.
The whistle-blower, Seth Freedman, worked at ICIS Heren, a financial information company that publishes energy price reports.
He said even though this alleged instance may have not added to customers' bills, it was still damaging: "There's certainly a link. They [the power companies] are telling you: Look, in order to make our profits and cover our costs and so on, we have to give a price to retail customers which reflects the cost to us.'
"But if you can't trust the market at a wholesale level, it becomes a crisis of confidence. People at retail level are just thinking, 'I don't trust these companies' - and it needs to be scrutinised."
(H)
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Northern Ireland WeatherToday:After a dry start this morning rain will spread from the northwest across all parts. This afternoon will be dull with some patchy rain and drizzle. Becoming much milder through the afternoon. Maximum temperature 11 °C.Tonight:A cloudy evening and night with a little light rain or drizzle, perhaps some clear periods developing along the east coast. A very mild night everywhere. Minimum temperature 10 °C.
