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

Nov 13 2012 By Cheryl Mullin

“Our members will all co-operate fully with the regulators and others. Customers need to have confidence in markets and authorities need to have the powers to regulate well and take action if required.”

The FSA and Ofgem are both looking into allegations made by whistleblower Seth Freedman, who worked at ICIS Heren, a company responsible for setting so-called benchmark prices.

Mr Freedman raised the alarm after identifying what he believed to be attempts to distort the prices reported by the company.

Ofgem was warned by ICIS Heren that it had seen evidence of suspect trading on September 28, the date that marks the end of the gas financial year.

It is believed prices went down by about 0.4% on September 28 – a key date as it can have an influence on future prices, according to the Guardian.

Mr Davey said his department and the Treasury were made aware of the allegations by the FSA last Friday.