Oral Answers to Questions

Grahame Morris Excerpts

Thursday 18th December 2014 Commons Chamber

[Kate Green (Stretford and Urmston) (Lab)]

14. What steps he is taking to help households with energy bills.

[Grahame M. Morris (Easington) (Lab)]

15. What steps he is taking to help households with energy bills.

[The Secretary of State for Energy and Climate Change (Mr Edward Davey)]

Mr Speaker, with permission I will answer this question with questions 3, 7, 10, 15 and 16.

There are three main ways in which we help people with their energy bills: first, with money, to help vulnerable customers with their energy bills with policies like the winter fuel payment, the warm home discount and cold weather payments; secondly, by helping people save energy and so cut their bills with policies like energy efficiency, product regulations, the energy companies obligation and the green deal; and, thirdly, by making our energy markets more competitive, where our reforms have seen the market share of smaller independent companies grow from less than 1% in 2010 to 10% today, enabling people to save hundreds of pounds on their bills by switching supplier.

--- Later in debate ---

[Mr Davey]

We have a whole panoply of measures to help vulnerable people, as I set out in my original answer. Some of the wider policies that we are implementing, particularly those relating to competition, are helping people across the board. We are in discussions with other Government Departments, particularly the Department for Work and Pensions, in relation to the point that the hon. Lady has raised.

[Grahame M. Morris]

It is not just heating oil prices that have fallen. Wholesale gas and electricity prices have fallen significantly in the past year, yet consumers have seen little reduction in their bills. Does the Secretary of State now regret voting against Labour’s motion on 18 June, which would have given powers to the regulator to ensure that when wholesale costs fell, the reductions were passed on to the consumer?

[Mr Davey]

It is interesting to look at the history of wholesale prices coming down and reductions not being passed on. There were much greater falls in wholesale costs when the Leader of the Opposition was doing my job, and they were never passed on. This Government have taken action by giving consumers far greater choice. They can now switch from companies that are not offering them a good deal and, in some cases, cut their bills by hundreds of pounds.