Energy: Electricity

Baroness Parminter Excerpts

Tuesday 11th January 2011 Lords Chamber

[Lord Marland]

My Lords, this is a complicated issue, and we have been in consultation with all the ports, airports and railways. That has been an extensive consultation. If the noble Lord wishes to meet with officials for further explanation and briefing on the consultation, I will, as always, make my officials available. I agree with him: it would be perfectly acceptable, if private network customers are satisfied with their private network suppliers, to go out to tender to obtain cheaper electricity. The fundamental point, however, is that in these difficult times, it is important that the customer has the cheapest and fairest electricity supply that is available.

[Baroness Parminter]

My Lords, it is welcome that the proposed changes will help people switch suppliers and potentially save money on their energy bills. Does my noble friend agree that more market competition and greater transparency in wholesale costs and retail prices would assure consumers that they were paying a fair price for their energy?

[Lord Marland]

I totally agree with the noble Baroness, but in fairness, it is the role of Ofgem to ensure that electricity prices remain competitive. We strongly encourage Ofgem to be transparent and to challenge the fairness of prices. As noble Lords know, we are reviewing the role of Ofgem and ensuring that it is carrying out those methods so that we end up with a competitive electricity market in these very difficult times.