New powers for Ofgem to tackle energy market abuse
The UK Government will implement a European Union Regulation to protect wholesale gas and electricity markets from abuse.
Press notice: 13/058
The UK Government will become one of the first in Europe to implement a European Union Regulation to protect wholesale gas and electricity markets from abuse. Under the EU REMIT Regulation, Ofgem will have new powers to require access to information, inspect premises and impose unlimited fines for those who break the law.
These powers will be put into place through Secondary Legislation and come into force from 29 June 2013.
Energy Secretary Edward Davey said:
“It is vital that we have all weapons at our disposal in the fight against unlawful activity in the energy market. It is my role to protect consumers, particularly the most vulnerable, who can suffer the most when markets are abused.”
“That’s why I have given Ofgem new powers to deal with market manipulation and insider dealing in wholesale gas and electricity. These include unlimited fines and new access to information, including the power to enter premises.”
Ofgem’s Senior Partner for Markets, Andrew Wright, said:
“It is important that consumers have confidence that energy markets are transparent and free from manipulation. DECC is giving Ofgem the necessary enforcement powers, under REMIT, to tackle abuse in the wholesale gas and electricity market.
“These powers complement the work we are doing to improve liquidity and transparency in energy markets, and our broader reforms to improve consumer trust and confidence.”
Notes for editors
- European Commission’s Page (DG ENER) on traded energy markets
- As energy is a devolved matter, Northern Ireland (NI) will put in place an investigatory, enforcement and penalty regime for breaches of REMIT. NIAUR will be given powers mirroring Ofgem’s and the proposed NI REMIT regime will come into force when equivalent NI regulations are made, no later than August 2013.