Energy Prices

Debate between Charles Hendry and Alan Campbell

Wednesday 19th October 2011 Commons Chamber

[Charles Hendry]

I will not give way, as I have several other points that I want to make, including some on the hon. Gentleman’s concerns about off-grid consumers. He said that he would like us to meet up and talk about the issues, and I would like him and my hon. Friends the Members for Hexham (Guy Opperman), for Truro and Falmouth (Sarah Newton), for Suffolk Coastal (Dr Coffey) and for St Ives, and others, to talk to me about how we should take this work forward. Important work has been done by the Office of Fair Trading, and we need to look at how to take that further. The issue that was raised about differential pricing and price on delivery has been addressed, and the OFT has said that it will continue to look at examples of market abuse.

I want to see what more we can do to develop the gas grid, because that would be of real benefit to the constituents of the hon. Member for Ynys Môn. I also want to see what additional powers would need to be taken, and where. The OFT’s report suggests that the market is working in almost all parts of the country, but we need to be certain, as our constituents face very high bills over the coming months, that we are doing this in the most appropriate way.

The role of shale gas was mentioned, but that issue will not affect energy pricing this winter. It is too early to know whether it will be a game-changer in the United Kingdom, but it could have a significant role to play. I would say to my hon. Friend the Member for Wycombe (Steve Baker) that it would be unwise to bet the farm on shale gas, unless his farm happened to be in north America and sitting on top of a shale gas deposit. However, we look forward to these technologies and the contributions that they can make as we will take forward a wide-ranging, all-embracing energy policy.

There has been a legacy of neglect. There has been a failure to secure the necessary investment in new energy infrastructure, and to address fuel poverty, which rose from 2.4 million to 3 million households over the course of the last Labour Government. There has been a failure to give consumers the clarity that they want, and to facilitate an effective changing regime, but that is now being put right. There has been an absolute failure to grip the challenges of energy efficiency. The hon. Member for Liverpool, Wavertree said that, for too long, those issues had not been addressed, and she was right. For too long, they were not addressed, but we have now taken forward many of the measures that the motion calls for—

[Mr Alan Campbell (Tynemouth) (Lab)]

claimed to move the closure (Standing Order No. 36).

Question put forthwith, That the Question be now put.

Question agreed to.

Main Question put accordingly and agreed to.

Resolved,

That this House believes that the energy market does not serve the public interest and is in need of urgent reform; notes with concern research by OFGEM showing that average household energy bills have risen, while energy companies’ profit margins have soared; recognises that, with a cold winter forecast and Government support cut, millions of families will struggle to heat their homes; believes that energy tariffs are confusing and unfair, meaning that 80 per cent. of people currently pay more for their energy than they need to, and that consumers who try to switch are often given inaccurate information; further believes that to tackle climate change, build a new low carbon economy and make the UK a world leader in green energy, which will bring new industry and jobs to the UK, people need to know that the energy market is fair; and calls on the Government to investigate mis-selling and ensure consumers are compensated, introduce a simple format to be applied across all tariffs, so that people can compare the full range of energy deals at a glance, increase transparency by requiring energy companies to publish their trading data, reform the energy market to break the dominance of the Big Six by requiring them to sell power into a pool, allowing new businesses to enter the market, increasing competition and driving down energy bills for families and businesses, and demand that energy companies use their profits to help reduce energy bills this winter.