According to The Times news editor, David Thorpe, the energy secretary, Ed Davey, has told the House of Commons that no one should prejudge the regulators’ investigations into alleged price rigging in the gas markets. And he encouraged anyone with further evidence to come forward.
He also said that it is unlikely that gas customers will be recompensed should the allegations prove to be true.
Following his statement, the secretary of state faced a number of questions from MPs, several of which were about whether, should the allegations prove to be true, bill payers would be recompensed for having paid over the odds for their gas.
He replied that the Energy Bill, to be published later this month, would permit fines imposed on energy companies to be returned to consumers in the future, but that it is not currently the case. Fines imposed by Ofgem are kept by Ofgem.
David Thorpe points out that it is likely that any decision made by the regulator will be under the existing regime.
“At this early stage in the investigation it is not possible to understand what the impact on consumers, companies or markets may have been, if the allegations are proven to be true,” concluded Mr Davey.
He said that his Department and the Treasury were informed last Friday afternoon that the FSA had received allegations of manipulation of the UK gas market.
He told the House that in the first instance, the Financial Services Authority (FSA) and Ofgem will consider these allegations, which are being taken very seriously.
More information: www.decc.gsi.gov.uk