Energy Company Licence Revocation
Debate between Caroline Flint and Nicholas Dakin(10 years, 2 months ago)
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Caroline Flint
I think there has been quite a lot of publicity about the fines, but what the hon. Gentleman says is interesting. The rules currently allow Ofgem to fine up to 10% of the company’s global turnover, which is a lot of money. I am not against Ofgem looking at whether it should be increasing the amount it fines, but I do think the ultimate sanction is about revoking a licence, because in such circumstances customers would have to be found a new supplier for their energy. Currently, that is exactly what Ofgem can do if a company goes into administration or if it fails to deliver gas and electricity to people’s homes. Is it not bizarre, however, that it cannot do this where there have been repeated offences against consumers through harmful customer practices that not only undermine trust in the energy market but, more important, make customers pay a heavy price?
Nic Dakin (Scunthorpe) (Lab)
I commend my right hon. Friend for her leadership on this issue, because that is what this is about: leadership in shaping the future, not looking back to the past, as such an approach is failing our business and domestic energy customers. I commend her for the way in which she has set out this case so clearly, and I am looking forward to the answer from the Secretary of State.
Caroline Flint
I thank my hon. Friend for his support on so many occasions when we have tried to put forward common-sense, constructive solutions to some of the problems that all in this House know exist in this energy market. Some will wrongly try to characterise our proposal as somehow anti-business—it is not. For one thing, businesses, especially small firms, have often been as much on the receiving end of the energy industry’s sharp practices as households. For another thing, if energy companies do not want to be at risk of losing their licences, all they have to do is treat their customers fairly and properly. More importantly, there is no such thing as a market without rules. It is difficult to think of a more vigorously free-market capitalist economy than the United States, but regulators there understand that a free market works only when there are proper rules to ensure competition and fair play. As Matthew D’Ancona said recently in his article in The Sunday Telegraph, capitalism must be
“tempered by the recognition that markets exist within a structure of laws and a social order.”
That is what I want for households and businesses in Britain.
Energy Price Freeze
Debate between Caroline Flint and Nicholas Dakin
Caroline Flint
My hon. Friend is right. I think that the former Prime Minister, Margaret Thatcher, also imposed a windfall tax on oil and gas. The truth is that when the market is not working it is important for Governments to step in, because failing markets do not provide competition or the security that people want from the energy sector. We all agree that these things, whether energy or water, are essential to life and that we all need them. In that situation, people expect Governments to step in and ensure that the market is fit for purpose.
Nic Dakin (Scunthorpe) (Lab)
Is not it interesting that the previous Conservative who won a general election, Sir John Major, recognises the need to do something, which is why he has urged a windfall tax on this occasion?
Caroline Flint
In his wide-ranging speech, the former Prime Minister expressed his concern about Governments being out of touch with the public, whether on energy or the cost of living. He suggested a windfall tax, but we want something that goes straight to consumers, which is why we think the price freeze is the right way ahead.
Solar Power (Feed-in Tariff)
Debate between Caroline Flint and Nicholas Dakin
Caroline Flint
I am afraid that the hon. Gentleman has neither read his brief nor sought other views. Ofgem, the independent regulator, made it absolutely clear that the feed-in tariffs cost less than £1 a year per household. The bigger problem is how prices have been put up while energy companies are making exorbitant profits, and while this Government are cutting the support available to people this winter. That is a price debate that I would like to have. The hon. Gentleman’s comments imply that he is in favour of those businesses going under, of social housing not having solar panels, and of this industry not even getting out of the cradle. That is rich coming from a party that prides itself on being the small business champion.
Nic Dakin (Scunthorpe) (Lab)
Does my right hon. Friend agree with a constituent of mine, Mr Robert Borrill, who described the Government’s decision as devastating, especially given that people have entered into commitments? Even those who have entered into financial commitments now will be penalised because of the six-week period. Surely, at the very least, the Government should consider that.
Caroline Flint
I absolutely agree, and I will come to that point later, because it is a travesty that the cut-off date has been set two weeks before the consultation finishes.
Amendment of the Law
Debate between Caroline Flint and Nicholas Dakin(13 years, 8 months ago)
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Caroline Flint
They have already U-turned on the forests; let us see how much they respond to the elections in a month when the people of this country will make it loud and clear what they think of the past 10 months. The sad thing is that we have had to wait 10 months for a so-called plan for growth. In those 10 months, we have seen unemployment and borrowing rise and growth fall. That does not bode well for anybody in the country, be they those with families, those in the public or private sectors, those with a business trying to grow or those trying to start up a business.
Nic Dakin (Scunthorpe) (Lab)
Does my right hon. Friend not agree that what we need in order to promote growth is demand in the economy? However, with public spending being cut and people losing their jobs, which will cut private spending, where will the demand come from to fuel private sector growth?
Caroline Flint
My hon. Friend makes a very good point. I could not make it better myself.
The fact is that this is not a Budget for growth. We have the highest unemployment rate in nearly two decades, with nearly 1 million young people out of work and inflation spiralling out of control. Even Moody’s credit rating agency, which all of us have heard so much about from Government Members, are warning that our triple A credit rating could be at risk. What is the price of this failure? It will be another £43.4 billion in borrowing. Yet all the Government can come up with is more of the same: the same old excuses; the same failed policies; and the same old stories from the same old Tories.
No number of excuses can hide the fact that the Government have cut too far and too fast, hitting jobs and growth, and putting our recovery at risk. However, there is an alternative. We could get our country’s finances back on track by halving the deficit in four years; we could give families and businesses real help by scrapping the VAT increase on fuel; we could repeat last year’s tax on bankers’ bonuses, and invest the money in building 25,000 new homes and getting 90,000 young people into work; and we could boost the regional growth fund by £200 million.
With the Government’s first major elections just weeks away, this Budget sets out a very clear choice: between Labour, which will do everything it can to protect jobs and the services people rely on, and this Tory-led Government imposing cuts with barely disguised relish; between Labour, which knows that there are difficult decisions to be made, but will make them in a way that is fair and open, and the broken promises and underhand tactics of the Tories and the Liberal Democrats; between Labour, which will support people into work and get our economy back on track, and a Government who are taking a reckless gamble with the economy that is hurting but not working. In one month’s time, people up and down the country will have their chance to send the Government a very clear message—and their voices will be heard.