Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, if the Government will review the system for redress and compensation to consumers who have been overcharged by energy companies.

The independent regulator, Ofgem’s has robust powers to investigate and compel redress when energy companies breach competition and consumer protection law, and their supply licence conditions.

Ofgem can impose financial penalties of up to 10 per cent of a licensee’s turnover for breaches of licence conditions and competition law, and apply to the courts for an order to stop breaches of consumer legislation. In addition, they can also require compensation for consumers adversely affected by regulatory breaches.

Consumers who believe they have been overcharged should raise the matter with their energy supplier and if they do not receive a satisfactory response, they can take the matter to the Ombudsman Service: Energy. The Ombudsman has powers to require a supply company to make a financial award to a consumer of up to £10,000.