Gas Market Fraud

Debate between Ed Davey and Clive Efford

Tuesday 13th November 2012 Commons Chamber

[Mr Davey]

I share my hon. Friend’s sentiments, but I stress that it is up to the independent regulators to investigate in the way that the law prescribes. I do not think my hon. Friend would expect me to do the investigations myself. We create the legal framework, and it is under that framework that Ofgem, the FSA and, if necessary, the OFT conduct their work.

[Clive Efford (Eltham) (Lab)]

The Secretary of State said in his statement that he knew that the FSA had received allegations about the fixing of gas market prices on Friday afternoon, but rumours about it existed before that time. Will he say when Ofgem first became aware of those rumours and what action it took on them? Would he not expect Ofgem to have made his Department aware of those rumours prior to this issue coming to light after the whistleblower made his information available?

[Mr Davey]

Ofgem has a daily role to monitor energy markets and make sure that they operate properly. In that normal process, it encounters a number of allegations. These will not have been the first allegations that it has received. Ofgem does not announce every particular allegation; it has to go through a proper process. Now there appears to be some evidence backing these allegations, but the reason we have an independent regulator is to allow it to get on and do the investigation. I suggest that that is exactly what we should do.