Energy Company Charges

Debate between Albert Owen and Caroline Dinenage

Tuesday 4th February 2014 Commons Chamber

[Albert Owen]

The purpose of the proposed price freeze, which is not the main theme of this debate, is to have a pause, take stock, get the regulator to look at the issues and think about future legislation. I believe that we are where we are because of rushed legislation to privatise both gas and electricity, which created the wrong starting point for an energy market.

Many people on prepaid meters will never be on the cheapest tariff, and that fact was never addressed by the Government when the Energy Act 2013 made its way through Parliament. I want to concentrate on those who are hardest hit by the price discrimination to which the motion refers. They are really struggling with their bills and I make no apology for highlighting that fact time and again. Many of my constituents do not have the best prices. They also have lower incomes and higher transport costs in rural areas, which all adds up to a cost of living crisis.

[Caroline Dinenage (Gosport) (Con)]

The inflexibility of the prepayment system means that many families end up having to go to a shop to prepay. Does the hon. Gentleman agree that, rather than have the Government compel the energy companies, those companies should use their initiative and take the profits from over-inflated prices to invest in new and more flexible ways for people to make their prepayments?

[Albert Owen]

The hon. Lady makes a good point. I think that the onus is on the energy companies, but it is also on the Government and the regulator. It is a heavily regulated market and the regulator has a role to play. The point I was making—I will move on from it in a moment—was about cons: it was incorrect to make bold statements to the people of this country, while legislation was making its way through Parliament, that they would be put on the lowest tariff.