How much could your business save?Find out now!
Or, you can call us on:0800 411 8830

Business energy: Ofgem fires wholesale energy ‘warning shot’


The UK energy watchdog, Ofgem, has published an open letter on market abuse in the wholesale business electricity and business gas markets. What does it mean?

Concerns over “behaviour that may constitute market manipulation” has prompted Ofgem to “remind market participants of their duty to publish inside information in an effective and timely manner” and complying with reporting obligations under the transparency regulations.

The letter specifically draws attention to aspects related to the Regulation on Wholesale Energy Market Integrity and Transparency (REMIT), an EU regulation adopted in 2011 designed to increase the transparency and stability of the European energy markets while combating insider trading and market manipulation.

Specifically, the letter notes that “misleading signals” or attempts to influence business energy prices. The practices ‘observed’ by the letter include ‘layering’, which the Financial Times eloquently explained as rapidly entering bogus bids or offers to manipulate prices. Pre-arranged trading and inside information disclosure was also mentioned by Ofgem.

Impact on business energy prices

Ofgem, as the Financial Times pointed out, gained new powers in 2013 so can now levy unlimited fines on those who break the rules. Ofgem warned in their letter that they will “take action to follow up on potential breaches of REMIT, including failures to register, report transactions or publically disclose inside information in a timely and effective manner”.

Closer attention to business energy is long overdue in the opinion of SwitchMyBusiness.com so the Ofgem warning is welcome.

However, the impact on business gas and electricity tariffs is as yet uncertain and may well be limited. Instead, you could spend 20 minutes us to quickly compare and switch business energy suppliers (with us taking care of the paperwork). Give us a call on 0330 0100 251 (or request a call back using our form) for a no obligation comparison.

Find out more about business electricity and business gas at our dedicated pages.

Related Articles

Powerlines-into-sunrise

The Week’s Energy News – 09/12/2016

This week’s energy news covers an acquisition and a host of renewable energy stories. Drax buys Opus Energy ...

Read More
the state of renewable energy

The state of renewable energy – infographic

Renewables are big business, and are increasingly viewed as commercially viable, as well as kinder to the envi...

Read More
the week's energy news

The Week’s Top Energy News – 02/12/2016

The Christmas season has well and truly begun and, in true business style, you’ll either be incredibly b...

Read More
Excellent, 9.6 / 10

Excellent Service

"Many thanks to Anthony Pendleton, very courteous and polite, explained everything in right amount of detail and very helpful in sorting out the business utility switch. Would thoroughly recommend."

This review was posted by Nicola on the 28th of November 2016

Switch Electric

"Rachael Grindrod was excellent, very friendly and helpful."

This review was posted by Maria Allen on the 29th of November 2016

Uswitch electric

"Thanks to Jonathon Burgess who was a great help switching electricity for a charitable organisation. The process was complicated and his patience was appreciated as well as his proffesional attitude. We would not have completed the process without his help. Thanks Dawn"

This review was posted by Dawn Kerr on the 29th of November 2016

Great service from Rachel Grindrod. Thanks.

"Great service Rachel"

This review was posted by Craig Hewett on the 30th of November 2016

Easy to Switch

"Using SwitchMyBusiness made changing electricity suppliers easy. Thank you Anthony Pendleton for your professional approach with advising on which supplier to use."

This review was posted by Vanessa Gernat on the 01st of December 2016