Energy: Domestic Tariffs

Lord Hunt of Kings Heath Excerpts

Tuesday 19th December 2017 Lords Chamber

[Lord Henley]

My Lords, the noble Baroness is quite right to say that bad insulation is not good for heating bills, so we would like to do better on that front. I would prefer to write to the noble Baroness in greater detail on the point she raised, but we are doing what we can to help all more vulnerable consumers with their heating bills. She will be aware of the warm home discount and the cold weather payments; and there is the winter fuel payment, which quite a number of noble Lords probably benefit from and which is worth up to £300 for a couple and £200 for an individual.

[Lord Hunt of Kings Heath (Lab)]

My Lords, the noble Lord says that Ofgem is doing a good job, but over the last few years we have seen evidence that the industry raises prices as quickly as possible and reduces them—when the international market shows a reduction in prices—as slowly as they can. Has Ofgem not used all the powers it has to intervene in the market?

[Lord Henley]

My Lords, what I made clear in response to my noble friend’s supplementary was that I believe Ofwat has done a very good job. Ofgem can do a very good job, but we agree with it that the energy market is not working as it should, possibly for the reasons the noble Lord has pointed out. That is why we have brought forward a draft Bill and are looking at what it might do. We will respond after the BEIS Select Committee has produced its report on that Bill.