FSA to investigate ‘Libor-like’ manipulation of gas market

The FSA is to investigate claims the wholesale gas market has been “regularly” manipulated by gas companies on a par with the Libor-fixing scandal.

The Guardian reports the City regulator has received information relating to the physical gas market and would be analysing the material.

It reports information has also been passed to the energy regulator Ofgen, by a whistleblower who worked for global energy market pricing company ICIS Heren over “suspect trading” on 28 September, the end of the gas financial year.

Energy secretary Edward Davey says: “I am extremely concerned about these allegations and will be keeping in close touch with the regulators while they get to the bottom of this”

A Department of Energy and Climate Change (DECC) spokesperson adds: “The FSA and Ofgem have a range of powers available to them and have our full support in applying the law and ensuring that any wrongdoers are held to account.

“DECC officials and Secretary of State Ed Davey have been in close contact with the FSA and Ofgem since we became aware on Friday [9 November]. We stand ready to support their work and provide any assistance that we can.”