Gas price-fixing probe: Government pledges firm action on companies found to be rigging market (VIDEO)

Nov 13 2012 By Cheryl Mullin

THOSE involved in the alleged rigging of Britain’s wholesale gas market will face the “full force of the law”, Energy Secretary Ed Davey has warned.

Mr Davey promised “firm action” if there was any truth in allegations of gas price manipulation made by a whistleblower to the Financial Services Authority (FSA) and energy watchdog Ofgem.

In a statement to MPs, Mr Davey said: “I see it as my job to protect consumers, not least the most vulnerable who can suffer the most when markets are abused.”

He said it was not possible to understand what impact any attempted manipulation, if proven, had on the market or prices paid by consumers.

But the Government had “absolute determination to clamp down on any abuse that is uncovered, wherever and by whoever”.

Prime Minister David Cameron’s official spokesman said that if the claims, published in the Guardian, were true then regulators should come down “very hard” on those responsible. He added that energy price manipulation was “totally unacceptable”.

All six of the big energy companies have released statements denying any involvement in attempts to fix the £300 billion market.

The industry trade body, Energy UK, which represents the companies, said its members would co-operate fully with the regulators.

Angela Knight, Energy UK chief executive, said: “This is a very serious issue which must be investigated swiftly.

“The gas market is an international one with many overseas companies trading on it as well as organisations that are not energy companies.