Angela Smith
Main Page: Angela Smith (Liberal Democrat - Penistone and Stocksbridge)
Chris Huhne
There are many anomalies that Ofgem is looking at in this area. A key part of that will involve looking at any unfairness in the system and making sure particularly that we simplify tariffs. There are far too many tariffs and that is confusing for consumers. If we can get a dramatic simplification, that will make the market work much more effectively. Currently, only 15% of consumers switch, whereas with car insurance about half do so through online sites. We need to get up to that figure and we will then find that the market works much more effectively.
Angela Smith (Penistone and Stocksbridge) (Lab)
Constituents have informed me not only that they are angry about the drop in the tariff and the potential loss of jobs in my area—these are people who have invested in the solar energy industry—but that the arbitrary deadline of 12 December means that there has been a rush for installation of solar energy in people’s homes, which is producing a sharp increase in the price of the components in panels. Does this not show that the Secretary of State has thought very little about the impact of this policy on the energy industry?
Chris Huhne
I disagree with the hon. Lady. When a policy is clearly going off the rails, it is important to grip it as quickly as possible. The problem with the industry was that it was massively exceeding its budget. If we had not acted, we would have been adding anything between £26 and £55 to the average household bill by the end of this Parliament, which would simply have been too much. We have had to take account of the cost to the consumer and I very much regret that the Opposition do not seem to remember that.