 THIS week's VaT hike could lead to a surge in fraud in the UK energy industry which would cost unwitting firms millions, legal experts have warned.  Revenue and customs officials warned the industry as long ago as July that they believe criminal gangs are looking at gas and power trading as a method to commit VaT fraud on a grand scale. The new year rise to 20 per cent will heighten that risk.  Jason Collins, a parter with Scottish law firm McGrigors, said: "The worry is that the impending higher VaT rates make the UK gas and power market a more attractive venue for fraud than before. Businesses in that sector must be extra vigilant to try to avoid dealing with fraudsters."  Over the years, so-called "missing trader intra-community" (MTIC) fraud has cost the UK government billions in lost tax revenues. However, the fraud has been on the wane, partly because much of the criminal activity has moved to continental Europe to take advantage of the even higher tax rates there.  "Much of the VaT fraud that was being engineered by criminal gangs had shifted to continental Europe where VaT rates are higher," said Collins.  "Their reasoning was that if you are going  