Jail term on the cards for energy market abusers

London - The British government has proposed penalties, including potential prison terms, for people who manipulate the gas and electricity markets.

Energy regulators can currently investigate and fine people found breaching rules on energy market abuse but cannot send them to prison or impose a criminal record.

The government wants to widen those powers to safeguard consumers from unfair practices, said the department of energy and climate change.

The new criminal sanctions should come into force next spring, after a consultation period and parliamentary approval, said the department.

"Manipulating the energy market is absolutely unacceptable and these proposals provide a much stronger deterrent -more in line with the approach taken in the financial markets," said Ed Davey, the department's spokesperson.

"At the moment all we can do is fine (the perpetrators) and that's not strong enough," Davey said.

Under the government's proposals, anyone found guilty of rigging wholesale gas and electricity prices could face up to two years in prison.