Ofgem fines Engie Global Markets £2.1m over gas price manipulation

UK Gas and Electricity regulator Ofgem has fined Engie Global Markets £2.1m followinig accusations that it engaged in “spoofing” to manipulate gas prices in 2016.

EGM reportedly acted through a trader working in the name and on behalf of the company to increase trading profits by influencing gas prices.

The practices involved changing prices by placing bids or offers to trade with no intention of actually going through with them in order to be able to sell at a higher or lower price.

In November 2016, a market participant alerted Ofgem to the suspicious activity on the wholesale gas market for Great Britain. Ofgem then launched an investigation into the three-month period, between June and August 2016 when the “spoofing” had allegedly occurred.

EGM agreed to settle early and proactively take measures to prevent a repeat occurrence.

Dermot Nolan, chief executive at Ofgem, said: “This investigation demonstrates Ofgem’s commitment to monitoring wholesale energy markets in Great Britain and ensuring their integrity on behalf of consumers.

"Ofgem’s enforcement action under REMIT sends a strong signal to all energy market participants that we have the powers to tackle market manipulation wherever we find it – and are ready to use them.”