Ofgem The UK’s Energy Regulator Is Given New Powers For Tackling Market Abuse
By Stew Robinson
The U.K.’s power regulator, the “Office of Gas and Electricity Markets” (Ofgem) will soon be getting some new teeth to address some of the prevailing issues in the energy industry both in the United Kingdom and in the European Economic Union. The government has said these powers are wide spread and will have serious financial consequences for those not following the guidelines set out by Ofgem, the fines have not been caped and are likely to be very severe for offenders.
The release of these new powers is timeous as there has been a lot of interest recently and questions raised as to the methodology of the regulation of the energy industry and its markets as well as the coaction between the both the actual commodities and the derivatives thereof.
Members not conforming to the relevant sections of the following Acts are at risk of penalisation. Direct quote :
(The Gas Act 1986, the Electricity Act 1989, the Utilities Act 2000, the Competition Act 1998, the Enterprise Act 2002 and the Energy Acts of 2004, 2008, 2010 and 2011).
Ofgem will work in conjunction with other departments, such as the Office of Fair Trading regarding collusion and other forms of un-ethical trade which is contrary to the Competition Commission.
As of the 29th of June 2013, Ofgem will have more authority to obtain access of all auditable information and documentation, and to access and carry out inspections of company properties as laid in a recent Governmental release.
Proof of Ofgem’s commitment to bring to book the transgressions of companies flaunting the regulations in the energy wholesale sector, is the imposition of an all-time high financial penalty to the SSE PLC (Energy Supply Limited) for mis-marketing of goods.
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