Domestic Gas and Electricity (Tariff Cap) Bill

Debate between Ian Murray and Claire Perry

Wednesday 18th July 2018 Commons Chamber

[Claire Perry]

I can reassure the hon. Gentleman that the original provisions in the Bill give Ofgem very broad powers, from the date on which the Bill receives Royal Assent, to implement the cap and then to review it as often as Ofgem feels is necessary. When the cap is operating, it can be reviewed many times. We have instructed Ofgem to conduct a review when the cap ends to ensure that the groups of customers identified can be helped. My understanding is that there is nothing in Ofgem’s existing powers that will prohibit it from doing the same thing in future. The regulator was in the past given extremely broad powers under the gas and electricity Acts, and it would be within its discretion to carry out such reviews. However, across all parties we felt it was important to put on the face of this Bill, which is the first piece of legislation to introduce these sorts of tariff caps and to empower further the regulator to use its powers, the requirement to carry out the initial review.

[Ian Murray (Edinburgh South) (Lab)]

On the same theme, what powers does the regulator currently have to ensure that energy companies are not artificially inflating prices ahead of the Bill coming into force?

[Claire Perry]

The hon. Gentleman refers to the regrettable series of price increases that we have seen from all the major, big six energy companies. Prices will of course go up because, as the hon. Gentleman will know, the wholesale price of gas in particular doubled—I believe; I will make sure the record is correct—in the last six months. The regulator can always define price rises as excessive, but the point of this very welcome cap is that those who are particularly vulnerable and who are on standard variable and default tariffs—often people who are elderly, perhaps less well-educated and furthest from the digital market, in which we all compete to switch—will be protected without having to switch. Indeed, the work that Ofgem is currently undertaking to ensure that the cap is set at a fair level will be vital to making sure that those protections come forward.

Amendment (a) will ensure that the legacy of the Bill, of which we should be extremely proud, is not undone by a return to business as usual by those suppliers that have thought up or carry out additional practices, such as tease and squeeze. I thank Members of this House, including Members from the Opposition Front-Bench team, for helping to create the amendment, which we believe is the most appropriate response to the concerns raised by members in this House and in the other place. I am delighted to see my hon. Friend the Member for Weston-super-Mare (John Penrose) nodding during my speech. Along with the right hon. Member for Don Valley (Caroline Flint) and others, he has been vital in driving this issue up to the top of the Government’s agenda and making sure that we get the Bill and this amendment right. I offer huge thanks to my hon. Friend and the others who have been involved.

Draft Scotland Act 2016 (Onshore Petroleum) (Consequential Amendments) Regulations 2017

Debate between Ian Murray and Claire Perry

Tuesday 28th November 2017 General Committees

[The Minister for Climate Change and Industry (Claire Perry)]

I beg to move,

That the Committee has considered the draft Scotland Act 2016 (Onshore Petroleum) (Consequential Amendments) Regulations 2017.

It is a pleasure to serve under your chairmanship, Mrs Moon. You and I have heard the term “handbagging” over the years. I apologise for my inadvertent use of the act before our proceedings commenced.

Christmas is coming and it is nice to put on the Santa hat. In opening the debate on the Scotland Act 2016 (Onshore Petroleum) (Consequential Amendments) Regulations 2017, I hope to deliver something that has been called for by Ministers in the Government north of the border and put in place the powers that will lead to further devolution. This process was recommended by the Smith commission. It was agreed that powers relating to onshore oil and gas licensing, apart from those relating to royalties, would be devolved to Scotland. The Scotland Act 2016 implements the Smith commission agreement by devolving a range of powers to the Scottish Parliament and Scottish Government. The Act transfers legislative competence for onshore petroleum to the Scottish Government, with the exception of matters relating to setting and collecting licence rentals. It also includes provisions for Scottish Ministers to exercise powers currently held by my right hon. Friend the Secretary of State or the Oil and Gas Authority in relation to onshore licensing in Scotland.

The consequential amendments before us deliver on a recommendation of the Smith commission agreement by complementing the provisions of the Scotland Act, and assist in giving the Scottish Parliament and Scottish Ministers greater control over their onshore oil and gas resources.

[Ian Murray (Edinburgh South) (Lab)]

Does the Minister agree with me, in the Christmas spirit in which she has commenced her speech, that these regulations, along with the many other regulations that have passed through the House, mean that the Scotland Act 2016 results in delivering the vow that was put together as part of the independence referendum?

[Claire Perry]

The hon. Gentleman makes a very fine point, and of course, in the spirit of Christmas coming early, my right hon. Friend the Chancellor of the Exchequer was in the Christmas spirit last week, when he brought forward innovative fiscal measures to support UK oil and gas companies, such as the introduction of a transferable tax history. Let no one say that this Government do not believe in the spirit of Christmas.