Oral Answers to Questions

Baroness Clark of Kilwinning Excerpts

Wednesday 5th February 2014 Commons Chamber

[David Mundell]

The hon. Lady is the Chair of the Work and Pensions Committee and we take her comments very seriously. I will ensure that they are also part of the discussions with COSLA.

[Katy Clark (North Ayrshire and Arran) (Lab)]

4. What change there has been in average household energy bills in Scotland since May 2010.

[The Secretary of State for Scotland (Mr Alistair Carmichael)]

Rising energy bills are a serious concern for consumers in Scotland and across the rest of the UK. We are sustaining vital financial support for the most vulnerable consumers. Our reforms are opening up the market to competition and we are working to ensure that suppliers put customers on the cheapest tariff possible.

[Katy Clark]

As the Minister knows, energy prices have risen dramatically since the coalition came to power. In rural and island communities people pay an even greater proportion of their income on fuel. Citizens Advice Scotland says that there was a sevenfold increase last year in people approaching it for advice on mis-selling in the energy sector. Does he not agree that it is now time for a radical reform of the energy sector, and for a price freeze until we put that reform in place?

[Mr Carmichael]

I say gently to the hon. Lady, who I know has taken a long-term interest in and has a notable record on this issue, that the phenomenon of energy price increases did not just start in 2010. It was a feature of the years of the Labour Government too, as a consequence of the reduction in the number of companies operating in the market. That problem would be recreated if we were to undertake her policy of a price freeze. We have already seen the number of energy companies operating rise from six to 14. A price freeze would be a real threat to that.