Gas Market Fraud

Glyn Davies Excerpts

Tuesday 13th November 2012 Commons Chamber

[Mr Davey]

I agree with the hon. Gentleman that, if it turns out that abuses have been committed that have affected prices for his and my constituents’ energy bills, that is an extremely serious matter, and we want the full weight of the law and investigatory bodies to chase down those people responsible. I have to say, however, that I do not think that makes the case for a new regulatory body. We need to make sure that the existing regulatory bodies, which have very strong and wide-ranging powers which this Government have increased, can take the necessary measures and penalise people if they are proven to have committed an offence.

[Glyn Davies (Montgomeryshire) (Con)]

The biggest challenge facing many of our households today is the cost of energy, including, of course, gas prices. Tolerance of these costs depends absolutely on trust that the market is not rigged. Because manipulative behaviour in the market is so difficult to detect, punishment for illegal activity must be sufficiently severe to create real fear in the minds of potential law-breakers or criminals. Will my right hon. Friend assure us that anyone found guilty of manipulating the market will face the severest penalties—including, possibly, long jail sentences?

[Mr Davey]

I share my hon. Friend’s concerns that our constituents deserve markets that are fair, deliver competitive outcomes and keep prices as low as possible. He is absolutely right on that. Again, I am being asked to prejudge the outcome of the investigations, but I can say to him that if certain offences are proved to have been committed, very serious penalties are attached to them. If a cartel offence, for example, has been committed, it is a very serious one and it has a criminal sentence attached to it.