Energy: Electricity

Lord Hughes of Woodside Excerpts

Tuesday 11th January 2011 Lords Chamber

[Lord Marland]

I totally agree with the noble Baroness, but in fairness, it is the role of Ofgem to ensure that electricity prices remain competitive. We strongly encourage Ofgem to be transparent and to challenge the fairness of prices. As noble Lords know, we are reviewing the role of Ofgem and ensuring that it is carrying out those methods so that we end up with a competitive electricity market in these very difficult times.

[Lord Hughes of Woodside]

My Lords, at Question Time after Question Time we keep hearing Ministers speak about competition and reducing prices. The facts are that prices still keep going up. Electricity has gone up by 9 per cent. How can 9 per cent on people’s bills be justified?

[Lord Marland]

The noble Lord is completely right that electricity bills are going up and have been going up. This is very regrettable, but let us look at the facts. In the past five years, oil prices have gone up by 60 per cent and gas prices by nearly 60 per cent. Electricity prices have also gone up by nearly that much in that time. It is incumbent on us to get a competitive situation in the market and I can assure your Lordships that this Government are trying everything that they can to achieve that.