Ofgem to Receive New Powers After Fears of Energy Market Rigging

With the aim to stop the manipulation of the energy market the energy regulator Ofgem will receive new powers which will lead to lots of changes.

After many people expressed their concerns that providers and financial institutions may be rigging the energy prices, now Ofgem will be able to inspect company premises and obtain potentially incriminating data, including a wide variety of legal documents.

In case it finds something wrong it would be able to fine the perpetrators.

The energy and climate change secretary Ed Davey will soon announce the new powers to the Parliament. These come as a consequence of the Libor scandal where banks were misreported to lend to one another trying to rig the system.

This led to fears about similar manipulation in the energy markets where the prices of oil, gas and energy may also be rigged so that the speculators may earn money on the shoulders of the average consumer.

Many say that reports may show what the current situation is, but in fact they may also be counterfeited and in he end consumers are deceived again.

One of the price-reporting agencies received a report with false data so that Ofgem and the Financial Services Authority conducted an investigation.

According to the European Commission the Remit legislation has to be adopted till the end of this month.

In order to get all the possible details of any attempted market manipulation EC authorities would ask for reports from companies of their buying and selling activities relating to oil, gas and power.