Energy market manipulation
could become criminal offence

Energy Secretary Ed Davey said the industry needed to change to put consumers “in control”, amid continuing controversy over rising bills.

The announcement followed a blazing row between the Government and Labour over how to tackle energy costs, with the Opposition pressing ahead with its pledge to freeze bills if it wins the next general election.

Four of the Big Six energy companies have announced average hikes of around nine per cent in recent weeks.

Mr Davey revealed that his department will consult on introducing criminal sanctions for anyone manipulating the energy markets.

He said the reforms will make it easier for consumers to switch and get the best deal, forcing energy companies to compete more actively for their custom.

The Minister announced plans to make switching simpler and quicker, and a new probe into energy firms’ accounts, to make them more transparent on profits and prices, as well as increasing penalties for market manipulation and regularly checking that the market is working.

He said: “The energy industry needs to change to put consumers in control. That means making it easy for people to change supplier to save money, it means regular market assessments to check their behaviour, and it means tougher penalties for market manipulation and putting an end to opaque finances.

“We want to push energy companies to make switching quicker and easier – because consumer action can force suppliers to change their ways.

“Bills are being redesigned through Ofgem’s retail market reforms to give people the information they need to make switching easy – and we are taking direct action through the Big Energy Saving Network to bring first hand help to those vulnerable people who find switching difficult.

“Energy companies need to know that any wrongdoing will be uncovered and dealt with. That’s why the regulators are going to carry out annual competition reviews, to make sure the energy market is operating properly.

“We are going to consult on increasing the sanctions for manipulation of the energy markets, so that they carry criminal penalties for the first time.”

Comment: Page 12.