Ofgem, the National Regulatory Authority for Great Britain, announced today the Engie Global Markets(EGM) has been fined £2.1 million. The press release can be found here, and a fuller announcement here.
The fine relates to activity carried out in NBP (National Balancing Point) gas contracts, and took place between June and August 2016. The investigation was initiated due to a “tip off” from a market participant, according to the announcement. The fine was reduced due to early settlement and EGM were found to have cooperated in the investigation. It is also noted in the announcement that EGM did not “take appropriate measures to prevent or detect the breach from happening.” This is stated to have been addressed since the activity took place.
The fine sends a further message to the market that REMIT will be used increasingly as a tool again market abuse in future. The topic will likely be discussed at ACER’s “EMIT forum” that starts today in Ljubljana.