Energy Prices

Debate between Caroline Flint and Alan Duncan

Wednesday 14th January 2015 Commons Chamber

[Caroline Flint]

My hon. Friend has made an important point. My hon. Friend the Member for Barnsley East (Michael Dugher), the shadow Transport Secretary, has suggested that we should compare what happens in the energy markets that I cover and what happens when it comes to ensuring that our cars and buses can run, along with all other forms of transport that rely on diesel and petrol. At the heart of debates such as this is the issue of how markets work and whether they are competitive enough. I hope we all agree that, in a truly competitive market of any kind, when wholesale costs come down those reductions are passed on to the consumer, but—as others have pointed out—that is clearly not happening now, at least in the markets that I cover.

[Sir Alan Duncan (Rutland and Melton) (Con)]

Will the right hon. Lady explain what she thinks a wholesale price actually is, and how she thinks supply contracts are priced?

[Caroline Flint]

I shall be happy to do so later in my speech.