THE Government will consider whether the energy industry watchdog's powers need strengthening after hearing about the case of a Derbyshire resident.

South Derbyshire MP Mark Todd challenged Npower after being contacted by a constituent who was paying more than he should due to changes the firm made to the way it charged for gas.

Soon after, Npower agreed to pay the customer £85 as a good-will gesture – but told the MP in a letter that he should not discuss the case with anyone else "under any circumstances".

Junior energy minister David Kidney was told about the case in the House of Commons yesterday. He said: "I want people and Ofgem to have confidence they will be treated fairly however they pay for energy.''

The minister said arrangements relating to Ofgem's position as industry regulator would be reviewed next year.

Npower has said that the comment in the letter to Mr Todd was made to guard against any breaches of data protection law.