BP trader is suspended

Oil giant BP has suspended a trader in the US over allegations of market manipulation during the Californian electricity crisis. The unnamed American employee works for BP Energy, the oil group's power trading business.

He has been placed on "administrative leave" following a year-long investigation by the Federal Energy Regulatory Commission (Ferc), the US energy watchdog.

Ferc's report accuses more than 30 energy companies, including the disgraced Enron, of manipulating markets during California's energy crisis in 2000 and 2001.

Ferc said its investigation had unearthed evidence, including recorded telephone conversations, suggesting the BP Energy trader and a fellow dealer at US energy firm Reliant had tried to manipulate electricity prices.

As a result, Ferc has ordered both BP Energy and Reliant to demonstrate why their authorities to trade should not be revoked as a result of the alleged findings. BP is standing by the trader and maintains there has been no wrongdoing.

A spokesman said: "We have done a thorough investigation into our trading activities in the US power markets and the trades completed by this trader, and have concluded that market manipulation did not occur. We are surprised and disappointed by the content of the Ferc report."

The spokesman added that BP would now give a "full and complete" response to Ferc. BP has 21 days from the report's publication last Wednesday to make its submission and prove its trader did not violate trading rules.