Oral Answers to Questions

Debate between Ann McKechin and Ed Davey

Thursday 3rd April 2014 Commons Chamber

[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.

Grangemouth Refinery

Debate between Ann McKechin and Ed Davey

Wednesday 23rd October 2013 Commons Chamber

[Mr Davey]

I am grateful to my hon. Friend for his question. Many of his requests fall under the responsibility of the Secretary of State for Business, Innovation and Skills, although we work closely together on all these issues, not least those to do with energy-intensive industries.

My hon. Friend is right to say that we have an application in front of the Commission with respect to state aid clearance on the costs to energy-intensive industries of the carbon price floor. We already have state aid clearance for our proposals to assist energy-intensive industries with the indirect costs of the European Union emissions trading system. As he will know, we are consulting to help energy-intensive industries with the costs of contracts for difference. Like other member states, we have a comprehensive programme to support energy-intensive industries. We continue to press that case.

[Ann McKechin (Glasgow North) (Lab)]

I concur with others in saying that the closure of the Grangemouth plant is a disaster not only for its staff and the local community but for the Scottish economy. It also has ramifications for the wider UK economy. Does the Minister agree that now is the time for an urgent review of how we regulate the owners of critical infrastructure of this country, to make sure that it is fit for purpose and that we do not again end up having to urge a reluctant company to come back to the negotiating table?

[Mr Davey]

The Government have looked at all aspects of critical national infrastructure—not just in the petrochemical sector, but across the piece—to make sure that, in the face of a whole series of potential disruptions to critical national infrastructure, whether industrial action or natural causes, critical national infrastructure is available for our country, economy and people.

We have had the most comprehensive review of policy to ensure that CNI is available. I apologise, but I am not sure what the Minister for the Cabinet Office, my right hon. Friend the Member for Horsham (Mr Maude), who is leading that, has published on it. However, he is leading that work and it is extremely thorough.

Oral Answers to Questions

Debate between Ann McKechin and Ed Davey

Thursday 13th December 2012 Commons Chamber

[Ann McKechin (Glasgow North) (Lab)]

23. The Secretary of State will be aware that Scottish and Southern Energy has indicated that pre-payment customers will now be able to enjoy the same rates as other customers. Is he going to persuade the other suppliers to do exactly the same?

[Mr Davey]

It is great news because it shows how competition can assist in this process. I refer the hon. Lady to Ofgem’s retail market review analysis, which showed that customers on prepayment meters can save an average of £65 and up to £152 by switching to the cheapest deal within that prepayment method. The proposals we are taking forward really will help people on prepayment meters.

Energy Policy

Debate between Ann McKechin and Ed Davey

Thursday 29th November 2012 Commons Chamber

[Mr Davey]

We are on track and we will hold to our commitments in the Climate Change Act. I refer my hon. Friend to my recent comments on the decarbonisation target being set at the same time as the fifth carbon budget. The fifth carbon budget covers the period from 2028 to 2033, and it therefore covers 2030, the year of the decarbonisation target in the power sector. The two approaches will therefore be brought together.

[Ann McKechin (Glasgow North) (Lab)]

Can the Secretary of State confirm that people who are on prepayment meters or who cannot access online services will be able to enjoy the cheapest tariff their supplier offers?

[Mr Davey]

Under the Ofgem proposals, those on prepayment meters will be on the lowest tariff, given their payment method. We are consulting on the Ofgem proposals, and we are committed to them.

Oral Answers to Questions

Debate between Ann McKechin and Ed Davey

Thursday 1st November 2012 Commons Chamber

[Mr Davey]

I am aware of Hitachi’s record, and with its Canadian partner it has a fantastic record of building new nuclear reactors on time and on budget. It has built 20 nuclear reactors over the past 40 years—an impressive track record—and I welcome it to the UK energy market.

[Ann McKechin (Glasgow North) (Lab)]

Does the Secretary of State agree that the development of carbon capture technology should be a priority for the new green investment bank?

[Mr Davey]

As the hon. Lady will know, the Government have already made a big commitment to carbon capture and storage, and we have announced the next stage of our £1 billion competition, with four of the original eight bidders going forward. It is not for me to set the investment priorities of the green investment bank; the purpose of it being at arm’s length from the Government is so that it can set its priorities.

Oral Answers to Questions

Debate between Ann McKechin and Ed Davey

Thursday 3rd June 2010 Commons Chamber

[Mr Davey]

Thank you for that helpful advice, Mr Speaker.

The hon. Member for Bassetlaw (John Mann) has always been known in the House for his modest use of language and his cross-party spirit, and I am sure he will want to ensure that all trade unions that fund mailings use Royal Mail.

[Ann McKechin (Glasgow North) (Lab)]

16. What recent assessment he has made of the future prospects of the video games industry in Scotland; and if he will make a statement.