Gas Market Fraud

Frank Dobson Excerpts

Tuesday 13th November 2012 Commons Chamber

[Mr Davey]

It is because of people in fuel poverty that we should take such allegations as seriously as we are taking them, although I should say to my hon. Friend—no doubt I shall say this to other hon. Members—that these are early days. We do not want to speculate on the exact nature of the offence or on whether it has been detrimental to individual consumers or companies, so I would guard against jumping to conclusions. However, she will know that if detriment to consumers can be proven, there are powers in competition law for different types of redress.

[Frank Dobson (Holborn and St Pancras) (Lab)]

Does the Secretary of State not agree that since the hedge funds and banks got involved in this market and it is no longer confined to the producers and distributors of gas, it has become nothing more than a speculative racket? Would he also acknowledge that the ultimate expression of a speculative racket is somebody trying to manipulate the market?

[Mr Davey]

The investigations will determine whether anyone has been involved in a racket. I will not prejudge those investigations, although the right hon. Gentleman seems to wish to do so. He is concerned about the role of people involved in hedging, but that can be quite important for a market, in that it can make it more liquid, which can reduce prices. I would counsel him against suggesting that we completely pull apart the liquidity of the gas market.