Legislation introduced to give FERC more authority to prevent energy market manipulation

The Energy Consumer Protection Act of 2023 would provide the Federal Energy Regulatory Commission (FERC) with additional authority to go after trades that repeatedly manipulate electricity and natural gas markets.

U.S. Reps. Don Beyer of Virginia, Jan Schakowsky of Illinois and Sean Casten of Illinois introduced the legislation this week. Companion legislation was also introduced in the Senate by U.S. Sens. Catherine Cortez Masto of Nevada and Maria Cantwell of Washington.

“As we head into summer, we must ensure that energy prices remain affordable. For far too long, energy companies have taken advantage of consumers — manipulating prices and deceiving regulators,” Schakowsky said. “That is why I am proud to reintroduce the Energy Consumer Protection Act with my colleagues to give the Federal Energy Regulatory Commission the tools it needs to hold energy companies accountable and protect consumers from market manipulation and corporate greed.”

Casten said that lawmakers “must do everything we can to ease the burdens Americans have already suffered due to climate change. Our bill, the Energy Consumer Protection Act, will help bring down energy costs for families across the country by giving FERC the additional authorities it needs to prevent market manipulation.”

Beyer said market manipulation is not affordable while American families are struggling with energy costs. The legislation “would provide FERC with the ability to address those concerns.”

FERC’s enforcement mechanisms are not strong enough to deter traders from repeatedly violating laws that ban market manipulation and false or misleading representations. The legislation would give FERC additional tools to enforce existing law by allowing them to ban companies from trading in energy markets if they choose to manipulate.

“I’m working to hold bad actors across the energy sector accountable for manipulating markets and hiking up prices for consumers,” Masto said. “My bill gives FERC the tools it needs to go after market manipulators and help bring down costs for businesses and families in Nevada.”

Cantwell said the legislation will add a key consumer protection arrow to FERC’s quiver.

“The burden of today’s elevated energy prices makes the quick passage of this bill more important than ever,” Cantwell said.