Oral Answers to Questions

Caroline Flint Excerpts

Thursday 17th October 2013 Commons Chamber

[Mr Davey]

My hon. Friend is absolutely right. When big energy companies make these high price rises, I would urge all their customers to look at the competition available. There is a lot of choice out there. In fact, there is far more choice than there has been for a long time—possibly ever. The last Government killed choice and reduced competition; under this Government, we have seen a big increase.

[Caroline Flint (Don Valley) (Lab)]

Let me tell the Secretary of State that if Labour is elected, our price freeze will happen, and if companies collude to increase prices beforehand, we will take action. The right hon. Gentleman is the one in government, so if companies try to hike up their prices beyond anything that can be justified before 2015, will he stop them—yes or no?

[Mr Davey]

We will help customers to get the best deals. The right hon. Lady knows that. She knows that on the current market, customers can get much better deals than those offered by the big six. She knows that the number of small suppliers has increased. She knows that in 2011 there were no independent suppliers with more than 50,000 customers. Thanks to our policies, there are now three with more than 100,000 and a further seven companies have entered the market in the last two years. That is the choice; that is the solution: people can cut their bills significantly by changing supplier.

[Caroline Flint]

There you have it, Mr Speaker: every single time, this Government put the energy companies before consumers. According to figures from the House of Commons Library, energy prices are rising three times faster under this Government than under the last Labour Government. Our price freeze will save money for 27 million households and 2.4 million businesses while we reset the market. It is the right hon. Gentleman’s policy that is a con; he says everyone will be put on the cheapest tariff, but is it not a fact that 90% of people will see no benefit from his policy at all?

[Mr Davey]

Millions are seeing benefits from our policy of competition. The right hon. Lady has made a very interesting point today. In response to our charge that Labour’s policy is a con, because energy companies could push up bills beforehand and after, she said that Labour would take action if they do. Does that mean that she is going to introduce full price regulation? Is Labour now promising that, because that is the implication of what she said?

--- Later in debate ---

[Mr Davey]

My hon. Friend knows that we are a champion of low-carbon energy investment. I strongly welcome ShareAction’s campaign to promote responsible investment by pension funds and fund managers. People who operate these pension funds should think long term, and there is no longer-term problem and challenge for the people they are investing for than climate change.

[Caroline Flint (Don Valley) (Lab)]

During these questions British Gas has announced that from 23 November it will increase its gas prices by 8.4% and its electricity prices by 10.4%. This is the company that, with Centrica, has passed on the highest share of its profits to its shareholders while making the least amount of investment into what we need to ensure our energy security in future. Two years ago the accountancy firm BDO warned that the big six energy companies could be under-reporting their profits and recommended tighter rules, but the Government and Ofgem failed to act. We backed the new rules, and so did a recent Select Committee report, but in their response all the Government could say was, “Government is not in a position to comment.” Why will not the Secretary of State stand up for consumers, support Labour’s price freeze and make the energy companies tell us exactly how much money they are earning?

[Mr Davey]

First, that is extremely disappointing news for British Gas customers. British Gas will need to justify its decision openly and transparently to bill-payers. British Gas was the only energy company not to meet its targets under the previous obligation to make its customers’ homes more energy-efficient. That left more homes cold and its customers paying over the odds. British Gas has form in failing to meet its targets, the last of which was set by Labour. I hope that the right hon. Lady will join me in making sure that British Gas is more transparent about its costs. We are pushing competition, and I urge British Gas customers who are unhappy to change their supplier.