14 September 2006
Ofgem, the energy watchdog, has said that companies can expect to be fined if the prices they issue to customers fail to reflect the decreases in the wholesale price of gas.
Alistair Buchanan, Ofgem spokesman, told the BBC One Breakfast programme that companies who kept artificially high prices would be penalised by the watchdog.
He said: "We are saying that we are here to protect customers. If we at all conclude that companies are keeping some of the jam on their fingers as prices fall then we have far ranging powers, we can fine companies up to 10% of their global turnover."
Consumers have seen a number of increases in their gas prices over recent months. Energywatch states the average UK gas bill has risen by 40% since 2003.
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