Ed Davey
Main Page: Ed Davey (Liberal Democrat - Kingston and Surbiton)(9 years, 10 months ago)
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Caroline Flint
I think that in a number of policy areas, the Government are—to put it in a not very academic way—all over the shop. When it comes to energy, they contradict themselves daily, and I can provide the House with evidence of that.
Our motion raises four questions. First, have wholesale costs fallen, and are they continuing to fall? The answer to both parts of that question is clearly yes. Ofgem—the independent regulator with access to market data—confirms that that is the case. Its most recent estimate suggests that contract prices for the delivery of gas and electricity this winter are, respectively, 17% and 7% lower than they were this time last year. The Government’s own figures also show a fall. In a written parliamentary answer that I was given on 26 November 2014, the Minister for Business and Enterprise revealed that wholesale gas prices had fallen by 20% between November 2013 and November last year, and that wholesale electricity prices had fallen by 9%. Those figures relate to the day-ahead market. Platts, one of the price reporting agencies, thinks that the fall has been even more substantial: its estimates suggest that gas prices fell by 26% last year. On the forward market, in which energy companies are buying and selling energy ahead of time, the fall has been bigger still, with gas prices falling by as much as 30%.
There can be no doubt that the wholesale prices of both gas and electricity have fallen—not just a little, but quite a lot, and not just in the past few days or weeks, but for a sustained period of more than a year.
Caroline Flint
I will give way shortly.
That brings us to the second question that the House needs to consider today. Have those savings been passed on to consumers? Yesterday, E.ON announced a price cut of 3.5%. Of course, any cut to anyone’s energy bill is to be welcomed, but E.ON is just one company, and it has cut the price of only one fuel—gas. Electricity prices remain unchanged, and it just so happens that E.ON has more electricity customers than gas customers. Moreover, it has cut its gas price by only 3.5%, which must be set against falls of between 20% and 30% in wholesale gas prices. Even if we allow for the fact that wholesale costs make up only half the energy bill, that suggests that, after cutting its price, E.ON has still pocketed most of the savings from falling wholesale prices. The idea that we are
“winning the war on energy bills”,
as the Secretary of State told The Northern Echo last week, is about as far from reality as the right hon. Gentleman’s chances of becoming leader of his party—much though some of us relish the prospect.
Some of the energy companies collude with the Government in perpetuating the idea that bills are falling. According to a press release issued on Sunday by Energy UK, the trade association for the energy companies,
“Energy suppliers are already passing on price cuts to customers.”
Apart from E.ON, none of the suppliers—notably the big six, which have millions of “sticky” customers on expensive tariffs—have cut the price of their standard variable tariff, which is the tariff that most people are on. What they are doing is offering cheaper tariffs in order to acquire new customers, but offering cheaper deals to a small number of new customers is completely different from passing on savings to existing customers. The obvious question to be asked is this: if companies can afford to offer cheaper deals—often hundreds of pounds cheaper—to acquire new customers, what is preventing them from reducing bills for the rest of their customers? That is the second fact that we have established this afternoon: wholesale costs have fallen, and the savings have not been passed on to consumers.
Mr Davey
On Sunday, on “The Andrew Marr Show”, the Leader of the Opposition told us that Labour wanted “fast track legislation” to ensure that Labour’s idea was implemented before the election. Can the right hon. Lady tell us which wholesale price Labour would use for its regulation? Would it be the daily price, the weekly price or the monthly price?
Caroline Flint
As I have said in the House before, we will give the regulator a power and a duty to ensure that when wholesale costs fall, it will make the decision—as is only right—to ensure that those reductions are passed on to consumers. I should have thought that the Secretary of State would welcome that. As was pointed out by my hon. Friend the Member for Denton and Reddish (Andrew Gwynne), Ofgem—which I understand the Secretary of State supports—has a duty and a responsibility to protect consumers, and one way of protecting consumers is to ensure that they are paying a fair price for their energy. I see absolute clarity in our policy, but no clarity on the Government Benches.
That brings me to the third question. This is where things really begin to get interesting. Why have suppliers failed to pass on these savings? A number of different explanations—although they might more accurately be called excuses—have been provided, both by energy companies themselves and by their friends in the Government.
The first excuse that we have been given is that, because there is a gap between the point at which an energy company buys its energy and the point at which that energy is actually delivered, a company might be buying energy 18 months or a year ahead of time. That is true, but wholesale energy costs have been falling for over a year, so even if companies bought their energy a year or more in advance, bills should still be coming down by now. That explanation simply does not hold.
The Secretary of State for Energy and Climate Change (Mr Edward Davey)
I thank the right hon. Member for Don Valley (Caroline Flint) for bringing her policy ideas to the House again. Some colleagues will remember the last time we debated a similar motion, on 18 June last year, and it was not a happy experience for the Opposition. Since then, the evidence that our policies are working has increased, and the Opposition have still failed to explain how their policies would work.
People out there—from pensioners to families—need our help with energy bills, and whether it is competition or regulation, energy efficiency or direct payments such as the warm home discount, I am determined that they get it. Indeed, I am open to any policy that genuinely helps people to pay their energy bills. However, the Labour party’s proposal would actually make things worse. My argument to the House today is as follows. First, when it comes to delivering lower gas and electricity prices for consumers, competitive markets are more effective than Government price fixing and heavy-handed regulation. Moreover, I will show not only that this Government have successfully acted to make these markets more competitive, but that we are not complacent—that we know more needs to be done for consumers—and that we will continue to work to improve competition further. Above all, I will show that, thanks to our policies on competition, consumers can now get the benefits of lower energy bills.
Debbie Abrahams (Oldham East and Saddleworth) (Lab)
How can the Government justify not passing on the fall in oil prices to customers? Some 8,000 households in my constituency are in fuel poverty, and nearly 3,000 people are accessing food banks. People are choosing between heating and eating. How can the Secretary of State justify not doing anything?
Mr Davey
The hon. Lady refers to oil prices but we are talking about gas and electricity prices. Oil prices relate mainly to transport—to petrol and diesel. However, assuming that she meant gas and electricity prices, thanks to competition, some of these price falls are coming through, and I want to give the House more detail about that.
Consumers can get the benefits not just of lower wholesale prices; many can get even greater savings, often more than double the savings from lower wholesale prices. Again, however, we need to do more to help consumers know that they can cut their energy bills today.
Robert Halfon
I am grateful to my right hon. Friend for what he is saying, and for the fact that the Government have taken £50 off energy bills. Further to the point that was made earlier, will he look at the issue of direct debits? The millions of people who do not pay by direct debit face a premium on their energy bills. I know the Government are looking at this, but it seems incredibly unjust and they could address it in order to help keep bills down.
Mr Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)
Will the Secretary of State give way?
Mr Davey
No, I want to make some progress; I will give way later.
Secondly, I will demonstrate that the Opposition’s proposed new regulations would be bad regulations, resulting in higher prices for consumers, not lower. I am not against regulations where they work better than competition, but Labour’s proposed regulations, involving wholesale-retail price links, would produce yo-yo pricing and higher pricing, and consumers do not want either.
The first part of my argument is that consumers benefit most from increasing competition in energy markets, and not from introducing bad regulation. It is interesting to note that Labour used to agree with competitive energy markets. Back in 2002, under Labour, all gas and electricity price controls were abolished. The argument supported by the Labour Government at the time was that the gas and electricity markets had become more competitive and that regulation was no longer needed. When the present Leader of the Opposition became Energy Secretary of State in 2008, he continued to back a policy of no additional price regulation, even though it was already becoming clear that the big six energy firms created under Labour were not producing the competitive outcomes that Labour had said it wanted. So clear were the problems in the market that there were calls for an investigation of that market by the independent competition authorities. Those calls for an inquiry were rejected by Labour—specifically by the present Leader of the Opposition. Worse still, not only did he reject a competition inquiry, but he took no significant action to improve competition for consumers. Interestingly, he also took no action to reintroduce price regulation. He just did nothing.
Charlie Elphicke
It is important that we should test the credibility of the Opposition’s arguments against their record in government. To that end, will my right hon. Friend tell us what happened to gas prices and to fuel poverty under the last Labour Government?
Mr MacNeil
The right hon. Gentleman talked about problems in the market. May I draw to his attention a problem that I have already raised with his Department, when the right hon. Member for Sevenoaks (Michael Fallon) was a Minister there? In the islands of Scotland, we pay a higher price per unit of electricity than people on the mainland and in London. We are also penalised by the locational charging for renewable energy. The right hon. Member for Sevenoaks was going to look into whether renewable energy produced in the islands could be considered as consumption in the local domestic market, and into the possibility of reducing the charging either way.
Mr Davey
I am aware of some of the problems that the hon. Gentleman has raised. He knows that the rest of Great Britain helps with some of those prices, through subsidy schemes paid for by every consumer in the rest of the United Kingdom. We have helped to support those schemes. He might be interested to know that I am going to Edinburgh tomorrow to talk about how we can help with wind power on the islands. We have to get the power there first, before we can take up the policy that he is proposing.
As I was saying, when the right hon. Member for Doncaster North (Edward Miliband) was doing my job, he did nothing. That is in sharp contrast with what has happened since the coalition came to power. We have been hyperactive in reforming our retail energy markets with a whole host of initiatives from deregulation to Ofgem’s retail review, from making energy bills simpler to making switching faster, from the MyData initiative to regulating for quick response codes on bills, and from collective switching to the Big Energy Saving Network. The result of our reforming actions is that competition has improved. Indeed, it has increased quite dramatically and I shall give the House the figures.
Ben Gummer (Ipswich) (Con)
Is my right hon. Friend aware that, even in opposition, the right hon. Member for Doncaster North is managing to increase bills for our constituents? The chief executive of E.ON has commented that the reason that prices have not fallen faster across the market is the threat of an energy price freeze from the incompetents on the Benches opposite.
Mr Davey
My hon. Friend is absolutely right. I shall come to that point and quote the chief executive, Tony Cocker, in a moment.
I was about to give the figures to show that competition had increased dramatically since 2010. Back then, there were just seven small energy suppliers, with a total market share of less than 1%. That is what we inherited from the right hon. Member for Doncaster North. Today, there are 20 energy independents taking on Labour’s big six. They have a market share of more than 10%, and that share is growing fast. In other words, millions of consumers have switched from Labour’s big six to the coalition’s small independents, and many have cut their energy bills as a result.
Dr Alan Whitehead (Southampton, Test) (Lab)
In the Secretary of State’s paean to the coalition’s activities to reduce prices and increase competition, he appears to have forgotten what he has just done in regard to capacity auctions. Will he confirm that the capacity auction that he has just carried out will give £1 billion a year mostly to the big six, and will raise prices to consumers by about 11p? Is he proud of that, in the light of the undertaking to reduce prices that he has given today?
Mr Davey
I am surprised by the hon. Gentleman’s question, because he is an real expert in this area. He sits on the Select Committee and he also served on the Bill that became the Energy Act 2013, so he will know that the capacity market that we created in that legislation had the support of the Opposition. It was needed because the objectives of energy policy are not confined to lowering prices; they also involve energy security. That is where the capacity market plays a role. He will also know that the results of the capacity auctions were far better than we had predicted. The closing price—the clearing price—was significantly lower than we predicted, so there will be a lower impact on consumer bills. That is good news for consumers, because it means that energy security has been achieved at a lower cost. He is wrong to say that all that money is going to the big six; a plethora of energy generators will benefit from it.
Let me be frank with the House. It has taken some time to turn around the mess in the energy markets that we inherited. We cannot switch competition on and off like a light bulb. We know that, until recently, energy bills have been rising over the course of this Parliament. The fact that they have risen more slowly during this Parliament, compared with the last Parliament, is frankly irrelevant to the consumer who still has to pay a higher bill. So, although we have increased competition and although that is working, I am determined to go further still. That is why, back in 2013, I commissioned the first annual competition assessment of our energy markets and why I strongly backed Ofgem’s referral last year of our gas and electricity markets to the Competition and Markets Authority.
The past 12 months have seen the first big test of the extra competition that we have introduced. Have consumers been able to benefit as wholesale prices have fallen? The answer is yes. Not all consumers have benefited, of course, but several million have switched to new suppliers and to new deals in which the fall in wholesale prices has been passed on. They have seen the benefit of our extra competition. Indeed, many people who have switched have seen savings far bigger than the fall in wholesale prices alone would produce. Our latest estimate suggests that many people could save about £300 a year by switching.
Caroline Flint
Would the Secretary of State admit that Ofgem believes the situation to be getting worse? Even if people are switching, which is welcome, their numbers are falling. Does he agree that it is only those who switch who are getting the benefit of new tariffs? What does he say to the many more customers who are on tariffs that provide no benefit as a result of the fall in wholesale prices?
Mr Davey
I think I counted three questions in there, and I shall try to answer all three, if I can remember them. The right hon. Lady said that Ofgem believed the situation to be getting worse. Certainly, its 2013 report compared the situation with the one outlined in its previous report and said that there were reasons for concern. That is why we supported its referral to the Competition and Markets Authority of our gas and electricity markets. She then talked about switching, and she was right to say that switching rates fell a little bit in recent years. The reason for that is that we have got rid of doorstep mis-selling. Doorstep mis-selling was responsible for a big boost in switching figures, but people were switching from one big six supplier to another, and often getting a very bad deal as a result. I am delighted that it has now been got rid of, even if that means that overall switching figures are down. Now, because we have made switching easier and faster—through collective switching and so on—we are seeing that situation turn around. This time, people are not switching between big six companies and getting a poor deal; they are switching away from the big six into the small suppliers and getting a much better deal. That is something that never happened under Labour.
Charlie Elphicke
To underline that point, I switched from SSE and British Gas to a new dual-fuel supplier a couple of years ago and saved 25%. The Opposition should not sneer at switching, because it can make a dramatic difference to people’s bills.
Mr Davey
Indeed. I was going on to respond to the right hon. Lady’s third question, because a host of deals are available across the country. I would have thought Labour Front Benchers wanted to support these deals and tell people about them and how people can switch and save money—if they really cared. For example, a year ago in London there was not a single deal in the market where the average household could get its annual supply of electricity and gas for less than £1,000, whereas today, because prices have been coming down, 13 deals offer the average household an annual dual fuel bill of less than £1,000.
I still want to do more. I am going to continue to fight for consumers every day that I hold this office, in stark contrast to the record of the Leader of the Opposition when he was Energy and Climate Change Secretary. The exciting news is that our competition from the smaller suppliers, which is taking huge numbers of customers from the big six, is now forcing the big six to act, too. Last autumn, the time when energy prices are normally put up, the big six froze them—without any regulation and without Labour’s price freeze. Yesterday, E.ON went further, cutting its variable gas tariff by 3.5%. Some have dismissed that cut as being only 3.5%, noting that gas wholesale prices fell by nearly 18% across 2014 and saying that the cut is too small. Let us look at what E.ON said. First, it notes that wholesale costs are 46% of the bill, so of course retail costs will not go down as fast as wholesale costs in any case, unless all costs, such as network and administration costs also fell by the same as wholesale costs—this observation is called arithmetic. Secondly, Tony Cocker, E.ON’s chief executive officer, has said:
“Given the possibility of a price freeze, we are undoubtedly taking a risk today”.
So we have to ask: if E.ON did not face the risk of Labour’s price freeze, would it have cut its prices even more?
Perhaps the Labour party does not want to listen to industry leaders, even the ones who are cutting prices, but the same point is being made by consumer champions. For example, Martin Lewis of MoneySavingExpert.com has warned that energy firms are not cutting their prices, even though they would like to, because they fear being locked in by a Labour price freeze that would make them suffer losses. Consumer champion—[Interruption.] Not a vested interest. Consumer champion Ann Robinson of uSwitch has speculated that the prospect of Labour’s price freeze could be to blame for the big six delaying cuts in standard prices.
Of course, there may be other explanations for the delay in the big six passing on the costs. When the Leader of the Opposition was doing my job, he explained that it was about energy companies buying their electricity and gas forward—hedging—to protect consumers. After a summit with energy firms—he was very good at having summits, after which no policy changes were announced—he said:
“We have recently seen big falls in wholesale gas and electricity prices, but I understand that because energy companies tend to buy in advance they won't be passed on immediately.”
One is tempted to ask: what has changed? Why did he do nothing when he could but now, months before an election, claim he has found an answer?
Whatever the cause, I welcome the fact that E.ON has not only cut its standard variable gas tariff, but is offering a fixed-price deal at just £923 for the average household. I want the other big energy firms to follow suit, but we will not need a regulation for that to happen. I confidently predict that competition will force the other large energy firms to cut prices, or they will continue to lose customers in droves to competitors—that is competition. Indeed, I am very confident that we will soon see more energy firms cutting their prices and offering even better deals.
Mr MacNeil
I am grateful to the Secretary of State for being very generous. He has talked about fighting for consumers. What will he do for consumers in rural and island areas, who are paying more per unit of electricity than those in big cities and doing so in areas that also have higher fuel poverty? He is in power at the moment, so what can he do?
Mr Davey
The hon. Gentleman rightly says that it is clear that there is a lot more fuel poverty in rural areas than was previously known about. When we redid the way we analyse fuel poverty figures, because the measures we inherited from the previous Government were not measuring fuel poverty very well—the Queen was in fuel poverty under their approach—we discovered that those in rural areas were suffering some of the worst fuel poverty. That is why we are changing some of our policies. I have some good news for him, because the falling oil prices have meant heating oil prices have dropped, too. That is good news for some people in rural areas who depend on heating oil, as it is at prices last seen in 2009. I know that that is not the full answer, but I hope it at least shows some welcome signs.
Let us just examine why our extra competition appears to be resulting in better deals and lower prices from the new entrants. There is now greater diversity in how firms buy forward, and with many different firms we are seeing different hedging strategies, new business models, new purchasing strategies and innovation. It looks like that is enabling many people to benefit from lower wholesale prices now. But despite that progress, the Opposition have turned their back on successful competition.
Debbie Abrahams
Given what the Secretary of State is saying now, can he explain what the Chancellor meant when he said it was “vital” that falls in wholesale prices are passed on to families through utility bills?
Mr Davey
There is no difference between me and the Chancellor here: of course we want to see price cuts go through to consumers. The question is: what is the best way of doing it? Is it through heavy-handed regulation, which has to be changed? As we have heard today, the price freeze has had to be changed because bills are coming down. If that regulation had been put in place, consumers would have seen higher bills now, not lower ones. That is why regulation is not—
Caroline Flint
On a point of order, Madam Deputy Speaker. As I said in the House on 2 April 2014 and have done many times since—I reminded the House about this today—the price freeze will stop energy companies increasing their prices but will not stop them cutting them. Therefore I am afraid the Secretary of State’s statements are seriously misleading, albeit unintentionally, I am sure. Can you tell me how he can correct the record?
Madam Deputy Speaker (Dame Dawn Primarolo)
That is not a point of order; it is a continuation of the debate. The Secretary of State is responsible for what he says at the Dispatch Box. Fortunately, I am not, unless it is unparliamentary, and so far he has not been.
Mr Davey
I will try my best not to be unparliamentary, Madam Deputy Speaker. For the benefit of the House let me quote what the hon. Member for Leeds West (Rachel Reeves), a shadow Cabinet colleague of the right hon. Member for Don Valley, has been reported as saying on Andrew Neil’s programme this morning: She said:
“We didn't use the word ‘cap’.”
I can show the House the Labour advert for the price freeze. I see a block of ice, and I see the words “frozen” and “freeze” but I do not see a picture of a cap. There is no cap on that advert. It is that there has been a change and that the Opposition are in complete confusion.
Let me put on record the fact that I am grateful for the support of the right hon. Member for Don Valley—she has supported, rather belatedly, our support for the deepest ever investigation of energy markets by the Competition and Markets Authority, which is now under way. However, there is one major caveat. Labour’s support for the CMA would be more credible—Labour would be more credible—if Labour was prepared to wait until just later this year to see the report; Labour could wait for the independent advice of the CMA before anyone regulates. If the CMA says that new regulations are needed to protect the consumer, I, for one, will back that. I doubt that new regulations will be its main recommendation, but I am sure of one thing: any regulation the CMA comes up with will be far more effective, far better thought out and far more likely to work than the frankly daft regulations Labour continues to propose. The fact that Labour will not wait for the independent CMA exposes its policy for what it is: a cheap political gimmick.
That is my second argument: Labour’s regulation would be bad for consumers and would put up prices. The first issue is the utter incoherence and inconsistency of Labour’s proposed regulations. Labour wants to freeze prices and, at the same time, force retail prices to go up and down with wholesale prices. As we saw earlier, the right hon. Member for Don Valley cannot explain which policy Labour now prefers: a freeze or yo-yo bills. Worse still, it now seems that Labour’s price freeze is not really a price freeze. She keeps on trying to deny it, but I have quoted the hon. Member for Leeds West and shown the figures. I can also quote The Sun. Under the headline “Mili may ditch price freeze vow”, a senior Labour source is quoted as saying:
“If bills are coming down there will have to be a rebranding to make it a cap.”
Clearly, Labour’s high command is worried: it knows that its price freeze would mean higher bills, as some of us have warned all along.
Caroline Flint
Perhaps, as we are quoting from journalists in the press, the Secretary of State will want to comment on what the energy editor of The Daily Telegraph tweeted today. She said:
“To be fair to Labour, heard them say energy ‘freeze’ is ‘cap’ many times.”
This morning, the Financial Times stated that
“the Government is still in disarray over how to respond to Labour’s campaign for lower energy prices.”
Perhaps the Secretary of State would like to comment on those reports.
Mr Davey
Did Members note that there was no quote from a source? The right hon. Lady was trying to compare a quote from a Labour source with a quote from a journalist—not terribly good.
We have always known that the freeze would be a bad idea. If wholesale prices rose during the freeze, small firms would go bust, damaging competition. If wholesale prices fall, energy firms would just make massive profits. If the freeze has become a cap, then that raises more questions. A cap implies that Labour’s regulation would work only one way. Wholesale price cuts would have to be passed on, but not price rises. Energy firms could only lose from such a regulation.
Opposition Members may not care about that, but they should remember that that means that consumers lose. For if the risk is only one way—lose—the energy firms will have to price in that risk in the prices that they charge, which means higher prices. Indeed, they will also have to price in extra regulatory uncertainty from Labour’s wholesale return to regulated prices. This will, therefore, be disastrous for consumers. Clearly, Labour’s policy would end up raising prices, but what about its proposal to force, by regulation, wholesale price cuts to be passed on to consumers? How would that work? First, there would have to be a wholesale price—the reference wholesale price—used for the purpose. Last June, I asked the right hon. Lady whether that wholesale price would be priced daily, weekly or monthly and she did not answer. I have asked her again and she still has not answered. That is strange, because the Leader of the Opposition told Andrew Marr this Sunday that he wanted to fast-track regulation, so one would assume that he had worked this out. We can only guess. Will consumer energy prices yo-yo up and down every day, every week or every month with wholesale prices? We just do not know.
One of the main purposes of energy firms buying ahead and hedging is to protect consumers from yo-yo prices. Forward buying smoothes prices for consumers. Let me explain this rather fatal problem with the Opposition’s proposal another way. Let me use data from last year to show how Labour’s policy would work—or actually not work. Over the whole year, day-ahead wholesale gas prices fell by almost 18%. But that fall over the whole year masked significant ups and downs during the year. For example, between March and July, gas prices fell by almost 40% before rising again by nearly 50% by December. If Ofgem had forced suppliers to drop retail prices to consumers to reflect the lows in wholesale gas prices in July, would it have had to force companies to raise retail prices to reflect the highs of December? Or would the right hon. Lady expect the firms simply to bear that loss? No answer cometh. What a lot of nonsense this is.
Charlie Elphicke
Does my right hon. Friend not agree that having that yo-yo system would massively impact on continuity of supply, because we would not be able to have long-term contracts to guarantee the delivery and supply of gas to this nation?
Mr Davey
Indeed. The danger is that the Government—some sort of Gosplan regulator—would effectively have to decide the purchasing strategies of all energy companies. Clearly, Labour has found someone who is much better than all the market participants. I do not know who that individual is; he has not been identified. Not only is this a lot of nonsense, but it will be very costly. Firms will face higher administrative costs. They will have to notify customers of price changes far more regularly, and the customer will have to pay for that.
Gregory Barker (Bexhill and Battle) (Con)
Will my right hon. Friend give way on that?
Madam Deputy Speaker (Dame Dawn Primarolo)
Order. The Secretary of State will not be giving way. The right hon. Gentleman joined the debate late. He has not been in the Chamber very long. It is a timed debate that has to end at 4.30 at the latest, and I have 13 speakers. After nearly an hour into the debate, we still have not completed the opening speeches. The Secretary of State will resume.
Madam Deputy Speaker
Order. Perhaps the Secretary of State could be generous to all the Back Benchers who wish to speak in the debate as well as intervene on him.
Mr Davey
I will take your stricture, Madam Deputy Speaker, as you are the regulator.
My final point on the right hon. Lady’s proposal is that it would damage fixed-price deals. They are the leading deals on the market and would almost certainly go in her model of regulation. I do not believe that consumers want Labour’s yo-yo prices or to pay the extra costs for the privilege of having yo-yo prices.
We have two different policy options on offer. A policy of increasing competition, which is working, has seen energy bills frozen and cut. It is a competition policy that we want to see pushed further still to get more benefit for every bill payer, not least with the CMA investigation. That approach stands against a policy of ill-conceived regulation that even in the most charitable light will increase risk, uncertainty and volatility and, as night follows day, mean higher prices for consumers. Lower energy bills from the Government or higher energy bills from Labour—I look forward to putting that choice to the electorate.