Energy Prices

Ian Lavery Excerpts

Wednesday 14th January 2015 Commons Chamber

[Ian Lavery (Wansbeck) (Lab)]

Listening to this debate, it is amazing that Government Members have suggested that this motion is a gimmick. It is far from being a gimmick. The right hon. Member for Rutland and Melton (Sir Alan Duncan) said that it is “populist posturing”. It is about reducing energy bills for millions of people in the UK, so of course it is populist, because people want that to happen. The Government are in a spin because the popular price freeze that Labour announced has become known throughout the country. People are absolutely delighted to see a political party standing behind them rather than the shareholders of the big six who seek a dividend.

Consumers feel as though they are getting a raw deal, and they are getting a raw deal. There is a lack of trust in energy companies—in particular, the big six—and understandably so. Yesterday it was revealed that British Gas could rake in an extra 60% in profits if it continues to refuse to cut prices. Whether it is in billing, information, tariff rates or overpayments, the British public believe they are being ripped off, and rightly, because they are being ripped off. Last year, UK gas prices went up by 1.9%, while the average price across the EU dropped by 5.7%. While electricity prices rose by 1.9% in the EU, UK households were hit by a rise of 6.7%. Wholesale gas costs have dropped by 28% and wholesale electricity costs have dropped by 14%. Of course people believe that they are being ripped off, because they are being ripped off.

The issue of the regulator is extremely important, and the Labour motion refers to it clearly. Put simply, Ofgem has a principal objective, which it says on its website is this:

“To protect the interests of existing and future consumers”.

That is what this motion is about. It is about making sure that instead of standing back and hiding around the corner from the big energy companies—the big six and others—Ofgem does what it is supposed to be doing in protecting people who are suffering greatly in this country. Year on year, we have heard debates in this Chamber about the number of people who are dying. My hon. Friend the Member for Glasgow North West (John Robertson) mentioned the scourge of fuel poverty. About 30,000 people are dying, annually, because they cannot afford energy. This is 2015, and we allow that to happen.

That is why the motion calls clearly for the regulator to be given powers to ensure that when the wholesale price drops, the consumer benefits immediately. I have heard the poppycock from the business men on the Government Benches whose main interests are the interests of the big six, not the interests of the people who cannot afford both to heat and to eat. We should be very concerned about the situation that we face here in the UK. There are a million statistics showing the problems that are facing people who are disabled or looking for employment but cannot afford to heat their homes.

This motion is very simple. It builds on the guarantee that the Labour party is giving with regard to a price freeze in 2017 if elected. It builds on something that people in the UK were absolutely delighted with—the fact that we were looking after people who were struggling. This motion will go to show, even more, that the Labour party is on the side of the people while the Government are on the side of big business.