@britishgashelp Whistleblower sees FSA begin investigations into Libor style fixing of Gas prices by UK operators.

[MARTIN3030]

The Financial Services Authority, is investigating claims by a whistleblower that Britain's £300bn wholesale gas market has been "regularly" manipulated by some of the big power companies, exploiting weaknesses that echo the recent Libor scandal.

Separately, the energy regulator Ofgem has been warned by a company responsible for setting so-called benchmark prices, ICIS Heren, that it had seen evidence of suspect trading on 28 September, a key date as it marks the end of the gas financial year and can have an important influence on future prices.

 

 

 

 

 

http://www.guardian.co.uk/business/2012/nov/12/libor-like-manipulation-gas-markets

[unclebulgaria67]

Disgraceful. If this is proven to be true, then I think everyone should cancel payments to their Gas suppliers and only agree to pay if a credit of say £100 is credited to their accounts, as a gesture, before a full calculation of overpayment is made. You have to think about the elderly who have died during cold weather when they could not heat their homes and also people who could not pay their bills being subject to debt collection.

[MARTIN3030]

Its unimaginable that all of the big 6 colluded in this to fix prices,but since we know this happened in the Libor scandal,it not beyond belief.

Its getting the proof which may be difficult since these are very complex processes.

Heads are certain to roll if they are found to be guilty.

With the possibility of fines equal to 10% of turnover too-this could see the largest corporate fines ever to be handed out in the UK.

[MARTIN3030]

To give some idea of the magnitide of potential fines here are the figures for turnover from the big 6 from 2011

 

npower turnover was £6.3bn (profit was £14m)

 

Scottish Power turnover was £3.5bn (profit was £82m)

 

EDF turnover was £6.3bn (profit was £92m)

 

E.ON turnover was £6.6bn (profit £226m)

 

Centrica turnover was £11.2bn (profits were £1bn)

 

Scottish and Southern turnover was £28.3bn) (profit £1.31bn)

 

Total £62.2bn

 

10% of £62bn = £6.22bn

[steveod]

To give some idea of the magnitide of potential fines here are the figures for turnover from the big 6 from 2011

 

npower turnover was £6.3bn (profit was £14m)

 

Scottish Power turnover was £3.5bn (profit was £82m)

 

EDF turnover was £6.3bn (profit was £92m)

 

E.ON turnover was £6.6bn (profit £226m)

 

Centrica turnover was £11.2bn (profits were £1bn)

 

Scottish and Southern turnover was £28.3bn) (profit £1.31bn)

 

Total £62.2bn

 

10% of £62bn = £6.22bn

 

 

makes no difference if it was £200 or £2 trillion. would not impact on those bunch of "alleged" fraudsters anyway as all they will do is load the future bills to cover these fines and losses and with ofgem as toothless as it is and always allowing these company's to get away with any price hike they want, there will be nothing we can do about it.

[MARTIN3030]

Energy secs response in HOC today

 

http://www.guardian.co.uk/business/2012/nov/13/energy-secretary-ed-davey-gas-price-manipulation

[MARTIN3030]

Also under new powers announced in September it was revealed that customers overcharged or mi sold would benefit from any fines that in the past have gone to OFGEM.

 

http://www.bbc.co.uk/news/business-19688019