Energy: Prices

Lord Touhig Excerpts

Monday 25th February 2013 Lords Chamber

Asked By

[Lord Touhig]

To ask Her Majesty’s Government what discussions they have had with energy providers about recent increases in prices.

[The Parliamentary Under-Secretary of State, Department of Energy and Climate Change (Baroness Verma)]

My Lords, my department has regular discussions with energy providers about a range of market issues. We are determined to help consumers to get their energy bills down through a range of measures to reduce energy inefficiency and increase energy security. We know that increasing global demand is driving up energy prices and that this will continue. That is why, through the Green Deal, we are hoping to help consumers to use less energy and, through the electricity market reform measures being introduced in the Energy Bill, we are providing the right environment for investment in key energy infrastructure.

[Lord Touhig]

My Lords, energy bills have gone up by more than £300 since this Government came to office. When the energy companies announced their most recent price hikes, they blamed rises in wholesale prices, yet research shows that they have more than trebled their profits. Will the Government look at the relationship between wholesale and retail prices so that we can be sure that British people are not being ripped off by these energy companies which, by today’s standards, might not be the unacceptable face of capitalism but most certainly are the unacceptable face of greed?

[Baroness Verma]

My Lords, energy prices have been going up over quite a period of time. In fact, the period 2004 to 2010 saw a doubling of gas prices, which was under the previous Administration. We know that global prices are going up and that demand has grown because of emerging economies. That is why this Government are determined that we should have a diverse mixture of energy that we can control in our own country ourselves.