My hon. Friend raises an important point. Currently, the fines that are being raised are going into the Treasury, and many questions have been asked about where that money should go.
If the Minister does not support our amendments, will he tell us what indication he has had from Ofgem as to how many of its current 15 formal investigations will conclude before these new powers are introduced, and how many consumers could miss out on compensation as a result?
Following the discussions we had in Committee, I suspect the Minister might argue that we are proposing retrospective legislation. Let me be very clear about why that is not the case. These amendments do not alter any of the regulations energy companies currently need to abide by. That is the crucial point. We are not seeking to penalise companies for something that was not against the rules at the time. Our proposals would simply ensure that customers whose providers are found to have broken the rules receive appropriate compensation, including for investigations that fall before the Bill receives Royal Assent. I hope the Minister will bear that in mind and support this change.
Turning to our other amendments, we seek to enshrine an important point of principle in the new powers: that customers who have been treated unfairly can, and always should be, fully compensated. As it is currently drafted, schedule 14 places a limit on compensation to 10% of an energy company’s annual turnover. I ask the Minister to explain what would happen if the losses suffered by customers were greater than that. How was that arbitrary figure reached—and why not 11% or 15%?