Oral Answers to Questions

Debate between Lord Watts and Charles Hendry

Thursday 26th January 2012 Commons Chamber

[Charles Hendry]

A very important part of this programme is education. Smart meters will work only if the consumer understands how to use them effectively to get the best value for money out of them. We are drawing a very clear distinction between education and sales practice because we do not want the installation of smart meters to be an opportunity for unscrupulous sales practices.

[Mr Dave Watts (St Helens North) (Lab)]

7. What steps he is taking to encourage households to improve their energy efficiency.

Energy Prices

Debate between Lord Watts and Charles Hendry

Wednesday 19th October 2011 Commons Chamber

[The Minister of State, Department of Energy and Climate Change (Charles Hendry)]

I am delighted to have the chance to respond to what has been, broadly, an excellent, high-quality and wide-ranging debate. Some contributions were perhaps overly political, but for the most part they were thoughtful. That reflects the genuine concern on both sides of the House, and the fact that in every single part of the country, people are worried about fuel prices this Christmas and this winter. They want the Government and the Opposition to work together as effectively as possible to try to deal with those issues.

That is why we have said that we will not oppose the motion—I could happily have written much of it myself. The motion states that the energy market is in urgent need of reform. That is why we ignored the Labour party’s claim before the election that there was no case for reform and have started the most wide-ranging reform process of the past 20 years.

The motion refers to concerns about Ofgem’s study into prices and margins. We encouraged Ofgem to carry out that work, and it was under this Government, not the previous Government, that it was started. The motion states that

“energy tariffs are confusing and unfair”.

Everyone who has spoken in this debate has talked about the difficulty of switching suppliers owing to the complexity of the system. That is an issue on which we really want to see progress. It also calls on us “to investigate mis-selling”. We are putting that right, although it would have been within the gift of the previous Administration to have addressed it—but they did not take that opportunity. The motion asks that we apply a simple format to tariffs so that people can compare them easily. Again, that is work that we are taking forward through Ofgem.

[Mr Watts]

rose—

[Charles Hendry]

The hon. Gentleman popped in 10 minutes ago, while others have been here for five and a half hours, so I shall not give way to him.

The motion calls for the publication of trading data, but Ofgem, under this Government, have now engaged forensic accountants to untangle the accounts of the big six. It also refers to breaking the dominance of the big six, but it is this Government who have started to facilitate the process by which smaller companies can enter the market and by which power generation can be auctioned off by the major companies. The hon. Member for Liverpool, Wavertree (Luciana Berger) asked whether the Government were going to stand alongside the big six. I think that we have shown, through our actions, that we are prepared to tackle the abuses that were there when the leader of the Labour party was Energy Secretary, and we have decided to move things forward.

The right hon. Member for Don Valley (Caroline Flint) talked about the energy summit. I hope that, on reflection, people will realise that the messages from that summit are important to our constituents. No one is pretending that they are the full answer or the long-term answer, but all our constituents would be well-advised, in the run-up to this winter, to consider what they can do themselves to mitigate high prices. My right hon. Friend the Secretary of State has never said that consumers should be blamed for current high prices, but he has said that there are things that we can all do and which we should be doing. Ridiculing that, as she did, might be good politics, but it does not help her constituents. If the alternative that she is suggesting is that they should not check their bills—my right hon. Friend has said how valuable that has been—consider switching or insulate, under her suggestion, her constituents would suffer this winter.