Baroness McIntosh of Pickering
Main Page: Baroness McIntosh of Pickering (Conservative - Life peer)
Mr Davey
We have been reforming the energy markets since day one, but we were not happy enough with the results and we wanted to do more, because of the mess we had inherited. That is why we asked the competition authorities to look at this matter. They have proposed a market investigation reference, and we are completely behind that. Neither we nor Ofgem are going to stand still during that 18 months, however. We are going to be working on trying to improve the markets even before the market investigation reference reports. We are being really active on reducing switching times, for example. We also want to push the smart meter roll-out programme, which will help people, and the Ofgem retail market review will complete and implement its proposals, including taking customers off dead tariffs. We have acted, we are acting and we will continue to act on behalf of customers. The last Government failed to do so.
Miss Anne McIntosh (Thirsk and Malton) (Con)
Will my right hon. Friend take this opportunity to examine the role of the regulator, Ofgem, in improving and increasing competition? How is it that above-inflation—sometimes double-digit—price increases have been allowed, when they are not allowed in other sectors, such as water?
Mr Davey
Price controls were taken off this sector in 2002, so Ofgem does not have the power to control prices. Hon. Members should remind themselves that it was the Labour party that took the price controls off. We want to ensure that the regulatory framework and the policies are correct. That is one of the reasons we are pushing the policies that we have adopted. It is also interesting to remind colleagues of the record of the Labour party and its leader. When he was doing my job in 2009, the right hon. Gentleman talked about reforming Ofgem, saying that
“the regulator needs stronger powers to deal with abuse, and the Bill will specifically act to prevent the exploitation of market power by energy generators.”—[Official Report, 24 November 2009; Vol. 501, c. 412.]
What went wrong with Labour’s plans when it was in government?
The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)
Tata Steel has made it clear that it welcomes the announcement in the Budget. It is important not to promise a scheme that could not necessarily be delivered by April 2015, because these schemes, like the others, take time to receive state aid clearance in Brussels.
Miss Anne McIntosh (Thirsk and Malton) (Con)
What are the procedures for a fracking permit to be issued for deep-well shale gas drilling, and what opportunities will those living locally have to express their concerns about the process in the planning application?
Michael Fallon
The process is that applicants must first have a licence and then receive planning permission from the local planning authority. They then need authorisation from the Health and Safety Executive for the method of fracking, permits from the Environment Agency concerning the protection of water and the environment, and, finally, a consent from the Department. The key to that process is that the major decision within it is local. It is a matter for the local planning authority to decide whether the application, on its merits, is appropriate for that particular site.