Oral Answers to Questions

Callum McCaig Excerpts

Thursday 14th July 2016 Commons Chamber

[Andrea Leadsom]

My hon. Friend is exactly right. People all too often fail to recognise that the energy trilemma consists of keeping the lights on, keeping bills down, and decarbonising. He is right that the capacity market is there to ensure the security of supply and that is the payment we make to keep the lights on.

[Callum McCaig (Aberdeen South) (SNP)]

I echo the remarks made about the right hon. Member for Hastings and Rye (Amber Rudd) and wish her well in her new role as Home Secretary. I am glad that the Minister is here, because if she had not been, these questions may have been a little more rhetorical than usual.

The previous Prime Minister said in 2012 that he would legislate to ensure that all consumers were on the lowest tariff. We have had four years since then, and an extensive CMA report has come up with recommendations that are a little underwhelming in their scope. Does the Minister think that that will be enough to ensure that energy customers get the best possible deal?

[Andrea Leadsom]

That was a fair question. The CMA has carried out a detailed piece of research and we are committed to implementing all its recommendations as soon as possible. We have also made it clear that if we do not see change, we will take further steps. The hon. Gentleman is right. We will implement the CMA’s recommendations. We will see costs come down, competition go up, and better remedies for people on prepayment meters, but we will also be alert to other opportunities to get costs down for consumers.

[Callum McCaig]

I am glad that the Minister says that the Government will remain vigilant on this matter. The CMA found that 70% of customers of the big six domestic suppliers were on the more expensive standard variable tariff. Will she set a target for reducing that so that we know what success looks like and to determine whether the further action that she mentions is required?

[Andrea Leadsom]

As I have just explained, we do not want to set a specific target. However, we are successfully providing support to organisations that then go on to help people to switch. I love the idea that if anybody listening to this really wants to help their grandparents, neighbour or whomever, who may not have the confidence to switch themselves, they could go and help them switch, possibly saving them several hundred pounds. Instead of setting targets and blaming people when they are not met, we need to persuade people of the advantages of switching.