Energy Company Licence Revocation

Baroness Primarolo Excerpts

Wednesday 3rd September 2014 Commons Chamber

[Amber Rudd]

I thank my right hon. Friend for his remarks. I am delighted to be following on from the good work that he has done.

It is good news that our work to break down barriers to entry in the retail energy market in order to create greater competition has resulted in an unprecedented number of suppliers operating in that market. Since May 2010, 12 new companies have entered the market, challenging the status quo, competing hard with the large established players and offering choice to consumers. During this period, more than 2 million electricity customers have switched to independent suppliers. The big six bequeathed by Labour are being replaced by the new challenger companies. We are driving competition in the market, and delivering more choice and a better deal for consumers. In 2010, there were just seven independent suppliers, all of which had fewer than 50,000 customers. Now, there are four independent suppliers with more than 250,000 customer accounts each, compared with zero in 2010. In that year, the share of the market held by the independents was around 1%, but it now approaching more than 7%.

We know that competition is not working as effectively as it should be, which is why we commissioned the first ever assessment of competition in energy markets from the competition authorities. It is also why we support the subsequent decision of Ofgem, based on a thorough, evidence-based assessment, to refer the energy markets to the Competition and Markets Authority. Tackling concerns about competition through a formal reference process undertaken by the expert authority will provide consumers, companies and investors with confidence that the process will be evidence-based, fair, transparent and free from political interference.

This Government are taking real action to make a real difference to hard-working households and businesses. We will continue our work to identify and address barriers to entry and growth, and to provide the right environment for the investment needed for the future. We will continue to build on the reforms that are already giving people a better deal on their energy bills. These include taking about £50 off average household bills, and introducing faster, easier switching and simpler tariffs and bills. We will allow the expert competition authorities to undertake their forensic examination of the energy markets. We must insist that reform of the market is driven by facts. We will not resort to the knee-jerk responses that we so often see from an Opposition seeking a headline. This motion epitomises such a response, but it would fail consumers, fail the market and fail in what it sets out to do. The Opposition have failed to make any sort of case in support of the motion, and I urge the House to resist it.

Question put.

The House proceeded to a Division.

[Madam Deputy Speaker (Dame Dawn Primarolo)]

I ask the Serjeant at Arms to investigate the delay in the No Lobby.