Huhne to get tough with energy firms over customer compensation

Industry regulator Ofgem should be given new powers to order suppliers to give money back to customers for “bad behaviour”, Energy Secretary Chris Huhne will say as he pledges to “get tough” with the big six companies.

The move comes amid anger at significant increases in energy bills announced by all six of the major suppliers in recent weeks.

At the moment, Ofgem only has the power to fine companies but cannot order them to make amends to customers. Mr Huhne believes they should either repay directly, or pay into a fund which can then benefit consumers.

Companies will also have to inform customers if they could be on a cheaper tariff under an agreement struck with the Government, while consumers will also be able to switch suppliers more quickly in a move to encourage more people to move to a better deal.

And Mr Huhne will say that 600,000 poor pensioner households will be given £120 off their heating bills this winter in a Warm Homes Discount.

“We are determined to get tough with the big six energy companies to ensure that the consumer gets the best possible deal,” Mr Huhne will say. “I want to help households save money.”

According to Ofgem, the average household could save £200 by switching to a cheaper supplier.

At conference yesterday Deputy Prime Minister Nick Clegg sought to draw a line under a “really really tough year” for the Liberal Democrats as he insisted: “We’ve got to stop beating ourselves up about it.”

“A political party that doesn’t move forward always ends up going backwards,” he told delegates as he urged them to be more positive and win over new supporters.

With many activists still reeling from terrible results in May’s local elections and the painful compromises of being in coalition, Mr Clegg told them: “We’ve nothing to apologise for.”

He also announced the Government is spending £350m to help one million of the world’s poorest girls into education.

And he reiterated his firm support for the Government’s planned £32bn high-speed rail network linking London with Birmingham, Yorkshire and Manchester.

Despite a delegate questioning whether the money could be better spent, Mr Clegg said it was “absolutely crucial” to the Government’s goal of rebalancing the economy away from its reliance on London and the South East,

On the subject of the railways, Transport Minister Norman Baker told delegates the railways should be “available for all”, in a thinly disguised dig at his boss, Tory Transport Secretary Philip Hammond,

Mr Hammond speaking at the Transport Select Committee last week, described the railways as a “rich man’s toy”, adding the new high-speed link was not designed for factory workers but their sales directors who would find it easier to fly out from Heathrow to drum up business.

But Mr Baker said the Government would clamp down on the inefficiency of Network Rail’s engineering works, and the company had to end “regrettable” inflation-busting rises in ticket prices.