(9 years, 10 months ago)
Commons Chamber19. What steps he is taking to help households with their energy bills.
Energy bills remain a worry for many, so we have three main ways of helping households: giving direct financial help, promoting competition and enabling energy efficiency. Our financial help includes the £2.15 billion winter fuel allowance for pensioners, and more than £31 million will be spent this winter on providing assistance to more than 2 million low-income and vulnerable households. Although there remains room for improvement, energy markets are more competitive than they were in 2010, enabling many people to save around £300 a year by switching supplier. Our energy efficiency policies, which provide permanent cuts to bills, have improved the energy efficiency of more than 1 million homes, enabling us to meet our target earlier than expected.
The report to which my hon. Friend the Member for Wythenshawe and Sale East (Mike Kane) and my right hon. Friend the Member for Delyn (Mr Hanson) referred shows that 2,300 children in my constituency live in families that have energy debt. Equally, at the other end of the spectrum, many of the high-energy businesses that sustain some of the most valuable jobs in my constituency are struggling because of this policy. What sort of policy is it that creates failure at both ends of the market?
I disagree that the policy is creating failure, but I agree with the hon. Gentleman and other Opposition Members that high energy bills need to be dealt with. The question is what is the best way of dealing with them. We have been dealing with them every single day since I took office by using competition, energy efficiency and direct financial support, and by helping energy-intensive industries. Our policies are working. Frankly, if we had listened to the Opposition, people would be paying higher energy bills.
My hon. Friend is right that pre-tax petrol and diesel prices in the UK are among the lowest in the EU. Nevertheless, we cannot be complacent, and it is right that there are investigations—I am sure he was not suggesting that the competition authorities should not investigate. He will know that, as I said in my statement, one issue surrounding the investigation is the reports made by different companies to a price reporting agency. We must wait to find out whether that affects domestic or European markets, but it is the reporting agencies and the prices they report that concern our competition authorities.
One aspect of the industry we need to consider is the massive number of refineries that have closed throughout Europe recently. Will the Secretary of State ensure he does all he can to work with companies who are investing in our refining capacity to ensure there is more competition in that part of the market?
The hon. Gentleman is right to mention the impact of the refining industry on the wider market. My Department is working with the refining industry and various operators in the sector to ensure we have a healthy refining industry in this country. The margins for refineries have been seriously squeezed in recent times. It is critical that we ensure fuel security, which means we need a healthy refining industry.