Ofgem has warned energy companies that they could be fined or face prosecution if they manipulate wholesale energy prices.
In a letter sent “to wholesale market participants and other interested parties”, the regulator said “concerns have raised with us in respect of certain behaviours that may be taking place within the market”.
Ofgem’s letter refers to some suspicious activities that were reported to the regulator about how some companies could be trying to inflate the selling price of their electricity by providing false information about the generating capacity they have available.
It highlighted it takes “its responsibility with respect to market conduct very seriously and monitors the market to probe potential breaches”.
The regulator also pointed out it has the “power to publicly censure, place unlimited financial penalties or institute criminal prosecutions”.
An Ofgem spokesperson added: “We are reminding generators that they have obligations, both under REMIT [Regulation on Energy Market Integrity and Transparency] and in industry codes, to provide accurate information to the market regarding how much electricity they intend to produce. Failure to do this could undermine market integrity and transparency by providing misleading signals to the market. We continually monitor the market and have not ruled out investigating if we have concerns.”