Gas Market Fraud

Robin Walker Excerpts

Tuesday 13th November 2012 Commons Chamber

[Mr Davey]

I refer the hon. Lady to Ofgem’s “Retail Market Review”, which was published recently after a great deal of study. It contains a set of proposals for how we might reform tariffs. I commend the review to all right hon. and hon. Members. We are reading it in detail before we come forward with our own proposals to help customers around the country with their tariffs.

[Mr Robin Walker (Worcester) (Con)]

I accept that it is too early to speculate on the outcome of the investigations, but if the allegations are proven to be true, my constituents who struggle to pay their heating bills will be appalled and will expect to see large fines imposed. Will the Secretary of State clarify whether, in the case of each of the regulators involved, the fines would be returned to consumers or kept within the industry?

[Mr Davey]

My hon. Friend makes a good point. At the moment, certainly so far as Ofgem is concerned, the fines do not go to the consumer. This Government have consulted on changing that, however, and we are making provisions in the forthcoming energy Bill to ensure that any fines would go to consumers if malpractice had been proven. That might not apply to whatever offence is found as a result of these investigations, but we are changing the law so that when an energy company does not play fair by a customer, the customer will benefit from the fines imposed.