Oral Answers to Questions

Jo Swinson Excerpts

Thursday 20th October 2011 Commons Chamber

[Chris Huhne]

No, I disagree with the hon. Gentleman on that. Once we had gone through the front-end engineering design studies, the specifics of the Longannet project were clear, including on the costs of transferring carbon into the reservoirs. Those costs were high; as a result, we could not do carbon capture and storage at Longannet, compared with where we believe we can do it elsewhere.

[Jo Swinson (East Dunbartonshire) (LD)]

5. What recent discussions he has had with energy suppliers on the provision to consumers of information on how to access the cheapest tariff.

[The Secretary of State for Energy and Climate Change (Chris Huhne)]

The UK low-carbon and environmental sector is growing strongly, despite the disappointing recovery. It employs about 910,000 people, and this could reach more than 1 million by 2015—[Interruption.]

[Chris Huhne]

You are absolutely right, Mr Speaker.

We have negotiated a voluntary agreement with suppliers to provide consumers with a prompt on their bills to cheaper deals this winter, and an additional communication to their customers who pay by cash or cheque to let them know how much they could save by moving to the cheapest direct debit tariff. There is also a commitment from suppliers to assess the impact of the prompt on bills and to improve it in the light of this evidence.

[Jo Swinson]

I thank the Secretary of State for that reply. Last week a Which? investigation uncovered the appalling behaviour of the big six energy companies, finding that they failed to offer the cheapest tariff in a third of calls. I welcome the moves announced this week, although I remain slightly cynical about the willingness of the energy companies to give consumers the fairest deal. Ofgem currently has the power to fine energy companies, but surely it should also be able to force companies to pay compensation in cases such as those highlighted by the Which? report, where they have effectively been mis-selling and providing inaccurate information.

[Chris Huhne]

I consider mis-selling to be a very serious offence, and it is a matter for the independent regulator Ofgem to investigate. As my hon. Friend pointed out, Ofgem has the power to fine energy companies. When customers have lost out, I expect energy companies to pay compensation. Unfortunately, Ofgem currently does not have the power to force companies to give consumer redress, despite the last Government having 13 years and several energy Bills to give it that power. This Government are not going to sit on our hands, unlike those on the Opposition Benches. We are carefully considering legislation on the issue as part of the next energy Bill.