Energy Prices

Andrew Gwynne Excerpts

Wednesday 14th January 2015 Commons Chamber

[Caroline Flint]

On the average energy bill, gas and electricity have gone up by about £260 since 2010. I shall say a little more about who has been hardest hit by that. If we look at the poorest people in our communities, we find that their price rises have gone up substantially more. On every occasion since I was given this job by my right hon. Friend the Leader of the Opposition, I have consistently raised concerns, as I think the hon. Gentleman will appreciate, not only about wholesale cost falls not being passed on, but about the sharp practices going on in the sector, which need to be attended to.

[Andrew Gwynne (Denton and Reddish) (Lab)]

My right hon. Friend will know that, like all regulators, the energy regulator, Ofgem, has its functions set out in statute—originally, I think, in the Gas Act 1986 and the Electricity Act 1989, as amended by subsequent legislation. Its primary purpose is to protect the interests of the consumer. Consumers’ interests are not being protected because that legislation does not allow the passing on of the cost cuts that my right hon. Friend has highlighted. Is that not precisely why we need to change the law?

[Caroline Flint]

I agree with my hon. Friend. Every time we have debated the powers of Ofgem, the regulator, we have been told that it has the powers, but is not using them in a practical way to deal with the challenges and problems that consumers face. I believe that, if we make laws in this place, it is essential for us to make laws that make sense and are clear—what is on the tin should be what is in the tin—and to ensure that those laws are enforced.