Shadow energy minister Caroline Flint said “a tough new regulator” would be given the power to revoke energy supply licences if there was found to be “repeated instances of the most serious and deliberate breaches”.
“The public have a right to be treated fairly by energy companies. Where firms fail to meet these standards there must be tough and decisive action,” Flint said.
In a statement the opposition party said that Ofgem had failed to bring an end to energy company misselling and poor customer service despite having issued 30 fines totalling £86 million since 2001.
“ Too often energy companies seem to view the regulator’s fines as a cost of doing business – not as a warning to get their act together. Of course consumers must be compensated – but if energy companies persist in mistreating their customers they must know their licence could be on the line,” Flint said.
Flint said the regulator would also be charged with producing an annual “scorecard” for energy suppliers, reporting on the company’s performance and identifying any possible areas of concern.
The proposals follow Labour leader’s pledge to break up the big six energy companies, cap consumer bills until 2017 and create a new tougher regulator if elected.