Probe launched into UK natural gas prices

UK regulators have launched a probe into alleged attempts to manipulate the country’s natural gas markets after concerns were raised about unusual price activity in the ‘National Balancing Point’ (NBP), the main pricing point for UK natural gas. The Financial Services Authority (FSA) and the Office of the Gas & Electricity Markets (Ofgem) are investigating the movements in late September on the NBP, which is the most active gas market in Europe, attracting billions of dollars of transactions from utilities, hedge funds and banks. The probe comes hard on the heels of moves by US regulators to seek a record fine of $435m against Barclays for allegedly manipulating the electricity market in California between 2006 and 2008.