Ofgem is a huge advocate of markets. As regulators they have traditionally tried to steer clear of market sentiments, where this is impossible is in transmission or distribution where there are barriers to entry for players, and so regulation is the only reasonable way of controlling margins. After recent gas rises in the UK Ofgem is clearly displeased with the way the market has moved, and has asked for an investigation from Brussels to see whether gas being sold from Europe to the UK was withheld. Clearly, if this is the case then political influence has manipulated the market and we get into a European debate.

The second approcah Ofgem have taken is to ask the DTI to step up their monitoring of off-shore operators. Any suggestion that they have been witholding gas, to provoke a squeeze market (cut supply watch prices soar) would not play well in any regulators eyes.

Unfortunately, customers pinning hopes on these investigations being successful and a subsequent drop in price, are unlikely to be happy, because the time needed for such investigations allows prices to stabilise and the "squeeze" will be ancient history.