Oil Prices: Rural Consumers

Baroness Worthington Excerpts

Thursday 29th January 2015 Lords Chamber

[Baroness Verma]

My noble friend is of course right to raise the issue of people living in rural areas. There are a number of factors that account for fuel price differences in rural areas. Often as not, the transport costs are higher and there are fewer competitors in rural areas. My noble friend is right to raise this, and we have spoken to energy companies to ensure that where they can pass on the price reductions they are doing so, so that no one is left out in benefiting from reduced pricing.

[Baroness Worthington (Lab)]

My Lords, during this period of volatile fossil fuel prices, does the Minister agree that we need a real regulator, with real teeth? We should not have to resort to talking nicely to the companies. Is it not true that we should take Labour’s example and bring in a regulator with real teeth, extending its remit to cover all heating fuels, including oil delivered in rural areas?

[Baroness Verma]

My Lords, the noble Baroness’s party had an opportunity for 13 years to change the regulator but did not. We believe that the regulator has been given enough powers to ensure that energy companies are performing and passing on savings. This Government have brought in greater competition. We believe that competition is what will drive down prices. Today we see 20 independent companies competing with the big six—which, of course, was a creation of the party opposite.