The FSA and Ofgem have launched an investigation into the alleged manipulation of the NBP wholesale gas price by one or more of the UK Big 6 following claims from a whistleblower published in the media. All have categorically stated that they take no part in market manipulation.
The UK public have up-until this point been fairly acquiescent as their energy bills have risen and complaints have been muted rather than expressly vocal. However, the Big Six should not take that as a sign that there is no discontent as a rejuvenated Ofgem/FSA along with mounting political pressure and upcoming energy market reforms place considerable downside risk upon them.
Allegations of manipulation of UK wholesale gas prices are being investigated by the Financial Services Authority (FSA) and Ofgem. The investigations by the FSA, the UK’s financial watchdog, and energy regulator Ofgem are said to follow claims by a whistleblower. Energy Secretary Edward Davey said he was “extremely concerned about the allegations [and that] the government takes alleged abuse in our markets very seriously”
The cause of the trading pattern, which involved a series of deals done below the prevailing market trend, has not yet been established.
It comes as quite a surprise to many managers when they learn that growth is not always a blessing. Rapid growth can put considerable strain on a company’s resources, and unless management is aware of this effect and takes active steps to control it, rapid growth can lead to bankruptcy.
This post looks at one way companies can measure whether they are growing too fast or too slowly and the corrective measures they can make.
Cash has building up on the balance sheets of companies across the world and they show very little interest is liberating it. Natural-resource companies account for a disproportionate proportion of the $900 billion of the cash-build up citing concerns over the euro-zone, middle east upheaval, possible recession in China and America’s economic health.
This Economist article looks at the issue of cash build up and how it impacts upon the economy in general
The UK Governments policies and handling of both short and long term energy issues have come under close scrutiny this week; EDF Energy announced a rise 10.8% in domestic fuel bills which was followed positive news relating to investment in the Horizons project by Hitachi and most recently the confusing message around windfarms.
This article published in The Guardian discusses the impact that mixed messages and uncertainty in relation to renewable power is having upon investors
The government looks set to stop new wind farms after Energy Minister John Hayes was quoted by The Daily Mail and Telegraph as stating that the UK had enough of them. The remarks, carried broadly in the UK press, have to be seen in the context of domestic political positioning as Mr Hayes looks to define his brief, in the context of the coalition and a wider conversation the Government is looking to have about low carbon generation.
Domestic support for wind-farms remains consistent and the Government is mandated to reduce greenhouse gas emissions by 34% by 2020. The debate over how this will be met will frame UK energy policy for decade’s to come.
This blog has previously highlighted and commented upon the difficulties faced by all parties in deployment of new nuclear plants in the United Kingdom. Whilst recognising the need for new generation capacity this corner of the internet, is yet to be convinced that nuclear power represents the solution to the problem for a number of reasons.
The news today that Areva and China Guangdong Nuclear Power (CGNP) are withdrawing their joint approach for the Horizon project has been widely reported and I present two articles in this post from CityAm and The Guardian
It’s hard to look beyond anything but a bearish outlook for the short and medium term in any of the markets this blog covers in Q4-2012. The European space continues to lack firm direction and has few options left to play, Crude Oil supply looks strong but Syrian and Iranian tensions remain and weakening Chinese growth is of concern.
Gold remains largely unchanged in the medium to long term on the back of ECB support for the EUR and the much anticipated third round of quantitative easing by the Fed.
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