Ann McKechin
Main Page: Ann McKechin (Labour - Glasgow North)
Ann McKechin (Glasgow North) (Lab)
1. What steps he is taking to improve competition in energy markets.
Chi Onwurah (Newcastle upon Tyne Central) (Lab)
2. What steps he is taking to improve competition in energy markets.
The Secretary of State for Energy and Climate Change (Mr Edward Davey)
From day one of the coalition we have worked to improve competition in energy markets. Deregulation stimulated growth in the number and size of small independent suppliers, competing with the big six we inherited, and we have taken action to encourage switching, including easier switching, faster switching and collective switching. Ofgem’s retail market reforms and market maker obligation are also improving competition in both wholesale and retail markets. However, because we believe more should be done, I asked Ofgem and the competition authorities to make an annual assessment and last week we backed its proposal for a market investigation reference.
Ann McKechin
I welcome the referral to the Competition Commission. In an article earlier this year the Secretary of State criticised Labour’s proposals to put up a ring fence between the generation and supply arms of the vertically integrated energy companies saying it would push up prices. Is he still ruling out the introduction of a ring fence?
Mr Davey
What we need to do in these matters is to go on the evidence and recommendations of the competition experts. I would not prejudge the market reference—let us see what it says—and I am glad the hon. Lady welcomes that, but one of the things the Opposition have failed to recognise is that there may be problems in the gas market, where there is not vertical integration. The Opposition have been completely silent on this matter, and I am not surprised as I am afraid their competition policies in this area have been appalling.