The UK government condemned tactics by power traders that the energy regulator says pushes up prices for consumers.
(Bloomberg) — The UK government condemned tactics by power traders that the energy regulator says pushes up prices for consumers.
An investigation by Bloomberg News on Thursday exposed tactics by power traders who say they’re stopping plants from generating before agreeing to keep them running at a higher power price. It’s often used on days when there’s limited supply available to the grid operator.
Traders ‘Manipulating’ Power Market Means Higher Bills in the UK
“The regulator Ofgem is aware of this concerning behavior from a handful of participants involved and is urgently looking into it further,” Jamie Davies, a spokesman for Prime Minister Rishi Sunak, told reporters on Thursday. “It’s critical that at all times consumers pay a fair price for their energy. So this practice is clearly completely unacceptable.”
Power traders racked up over £525 million ($647 million) using the maneuver in recent years, a cost that’s ultimately borne by consumers.
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