GLOBAL energy trading giant Vitol and one of its traders will pay $2.3 million (R43bn) to settle charges by US energy authorities that it manipulated the power market in California in 2013, a regulatory filing showed last week.
The US Federal Energy Regulatory Commission (Ferc) said Vitol would pay $2.225m and its Texas-based power trader Federico Corteggiano would pay $75 000 in civil penalties to fully resolve the charges.
In 2014, Ferc’s enforcement office undertook an investigation of Vitol's trading activity in California's electric power market during the week of October 28, 2013.
In October 2019, Ferc sought over $3.5m from Vitol, alleging that Vitol and Corteggiano violated federal market manipulation rules through a scheme to sell physical power at a loss to cause prices in another market to react.
Corteggiano joined Vitol in 2012. In 2013, he generated at least $13m in profits for Vitol trading, according to the 2019 filing.
Vitol did not immediately respond to a Reuters' request for comment.
Thursday's settlement filing says Vitol neither admits nor denies the alleged violations of certain provisions of the Federal Power Act and Ferc regulations. In a March 2022 federal court filing, Vitol denied the allegations.
REUTERS