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Energy Firms Face 'Criminal Sanctions' If They Fix Prices, Says Ed Davey

Energy Giants Could Be Fined For Fixing Prices
Asa Bennett
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Energy firms will face criminal sanctions if they fix prices as part of a tightened regime for the market, the energy secretary has announced.

Speaking in the House of Commons, Ed Davey said: “I intend to consult on the introduction of criminal sanctions for anyone found manipulating energy markets and harming the consumer interest.”

Davey suggested that consumers should be able to switch energy suppliers in a single day rather than five weeks, but he warned the 24-hour switch "will not happen overnight".

The mounting furore over energy prices comes after four of the 'Big Six' energy giants unveiled price rises. Scottish Power said it would increase prices by 8.6%, while Npower said it would up prices by 10.4%, SSE announced it would put up prices by 8.2% and British Gas would increase theirs by 9.2%.

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The energy secretary also unveiled an annual "competition test" under which energy giants would have to "open their books" and declare the profits they are making in different parts of their business.

See also:

2012 Government U-Turns
Pasty Tax(01 of10)
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If George Osborne learnt one thing this year it was not to take on those who indulge in warm pastry delicacies.His plan to introduce a 20 per cent tax food served above ambient temperature was instantly derided. The Sun even had a model dress as Mary Antoinette handing out pasties and following the Chancellor.The Government was forced into a U-turn, in a move that cost the Treasury £70m. (credit:Alamy)
Caravan Tax(02 of10)
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The Queen was so impressed with the Government's U-turn on a planned 20 per cent caravan tax that she went straight out and and bought this one.She then had it converted into a mobile bar and casino and gave it to Prince Harry. (credit:AP)
Secret Justice(03 of10)
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Ken Clarke's legislation allowing civil courts to hear evidence in secret to "protect national security", was met with stiff resistance from human rights groups.Clarke argued Britain's reputation as a country that can "keep secrets" was being damaged without such laws.Human rights campaign group Reprieve said secret courts would "destroy our centuries-old tradition of open and fair justice" and do "absolutely nothing to defend our national security".A huge Lib Dem revolt significantly narrowed the scope of the bill. (credit:AP)
Joint Strike Fighter(04 of10)
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The decision to purchase F-35b jets instead of F-35c jets was particularly embarrassing for David Cameron's Government.Cameron had been very critical of the F-35b, saying the F-35c was "more capable, less expensive, has a longer range and carries more weapons."Two years later, secretary of state for defence, Philip Hammond sad: "The facts have changed and therefore so too must our approach."Oh, ok then... (credit:AP)
Employment Law Reform(05 of10)
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Vince Cable vetoed his own government's plans to allow employers to 'fire people at will' in an effort to make employment law more efficient.Cable described the proposals as "complete nonsense". (credit:AP)
Charity Tax Relief(06 of10)
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Chancellor George Osborne announced in the Budget that he would limit tax relief on charitable £50,000 or 25% of income, whichever was higher.Charities voiced their outrage and insisted that it would put off potential donators. Osborne dropped the plans as Labour branded the government "shambolic". (credit:Alamy)
Payday Loans(07 of10)
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After a campaign spearheaded by Labour MP Stella Creasy, the government agreed to the new Financial Conduct Authority (FCA) powers to cap interest rates charged on payday loans.Some annual rates were found to be as high as 4,000%. (credit:Alamy)
Fuel Duty(08 of10)
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Osborne was forced to cancel a scheduled fuel duty hike in August and announced it would be frozen for the rest of 2012.Then in a further blow to the Chancellor, a rise scheduled for January 2013 also had to be scrapped. (credit:PA)
Badger Cull(09 of10)
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If there was one issue this year that managed to everyone upset from the average man in the field to your guitar-wielding PHD waving rock gods, it was the Badger cull.The cull was ordered was ordered as a preventative measure to stop the spread of Bovine TB.It was put on hold when the costs of the cull soared.In October, the plan was abandoned entirely. (credit:AP)
Buzzard Nest Cull(10 of10)
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Runner-up to the badger in the countryside victimisation awards was the humble buzzardDefra was forced to scrap plans to destroy the nests of buzzards to control their escalating numbers after a huge public outcry.It was a rather humiliating fourth u-turn in three days for the government. (credit:AP)
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