Annual Energy Statement

Christopher Pincher Excerpts

Wednesday 23rd November 2011 Commons Chamber

[Chris Huhne]

The hon. Gentleman should know that there will not be a change in tariff before April. The key point is that the old tariff is applicable to any scheme that is installed either before or after 12 December, but any scheme that is installed after 12 December will have a lower tariff from April. We will have plenty of opportunity to debate this later today and I am sure he will want to contribute to that debate.

[Christopher Pincher (Tamworth) (Con)]

Will my right hon. Friend encourage Ofgem to deal with the tariff anomaly whereby household energy bills fall when households use more energy? Surely, that places a burden on single and less well-off households and flies in the face of our desire to encourage greater energy efficiency in households.

[Chris Huhne]

There are many anomalies that Ofgem is looking at in this area. A key part of that will involve looking at any unfairness in the system and making sure particularly that we simplify tariffs. There are far too many tariffs and that is confusing for consumers. If we can get a dramatic simplification, that will make the market work much more effectively. Currently, only 15% of consumers switch, whereas with car insurance about half do so through online sites. We need to get up to that figure and we will then find that the market works much more effectively.