Annual Energy Statement
Debate between John Baron and Ed Davey(10 years, 1 month ago)
Commons ChamberRead Full debate Read Hansard Text
Mr Davey
I am afraid the green deal has in fact been hotting up—the hon. Gentleman obviously missed that. I can also tell him that, thanks to extra competition and choice and faster and easier switching, if energy companies are not passing on falls in wholesale costs to his constituents, his constituents now have the ability to move to companies that are. I urge him to look at the new fixed-price tariffs—and to show them to his constituents—which are enabling people to save money on their energy bills this winter.
Mr John Baron (Basildon and Billericay) (Con)
Given that the myriad tariffs and deals in many respects led to gross mis-selling on the doorstep, will the right hon. Gentleman never tire of reminding the electorate that one of this Government’s biggest achievements has been to oblige energy companies to be much more transparent about whether they are offering the best possible deal to their customers? Such transparency has helped many customers.
Mr Davey
May I pay tribute to my hon. Friend, who has done an awful lot in this regard? The Government have listened to many of his arguments, as I believe has the independent regulator, Ofgem. There has been a reduction in the number of tariffs—frankly, they led to obfuscation and got in the way of competition, on which the previous Government failed to take any action—and bills have become simpler, which all helps to promote competition. The fact that energy companies now have to tell their customers whether they have a tariff that could save them money is another step forward.
Oral Answers to Questions
Debate between John Baron and Ed Davey
Mr Davey
The welcome that industry gave to the publication of the Energy Bill was extremely heartening. The British Chambers of Commerce, the CBI, the Engineering Employers Federation and the Federation of Small Businesses, which represent thousands of businesses, welcomed the Energy Bill. The fact that we are taking powers in the Bill to set a decarbonisation target shows real leadership and many companies have welcomed that.
Mr John Baron (Basildon and Billericay) (Con)
T6. Will the Government do what they can to support the billing stakeholder group’s key recommendation, which has been adopted by Ofgem in its present consultation, that would oblige energy companies to be much more transparent in their bills? That chimes with the Prime Minister’s statement, but we know that the energy companies do not like it.
Energy Policy
Debate between John Baron and Ed Davey
Mr Davey
The hon. Gentleman always gives me a courteous and charming welcome when I appear before the Select Committee of which he is a distinguished member. However, I did refer to vulnerable customers in my statement. They are absolutely at the heart of our policy and at the heart of my concerns as I develop that policy. I have made it clear to the energy companies that I expect them to work hard, as the Government are working hard, to ensure that we reach out to people in fuel poverty.
Mr John Baron (Basildon and Billericay) (Con)
I congratulate the Government and indeed Ofgem on having accepted the key recommendation of the billing stakeholder group, which the Government asked me to chair, that energy companies should make clear in their bills how much their customers would save in pounds and pence if they were on their supplier’s cheapest standard direct debit tariff. That recommendation is open for consultation, and the energy companies do not like it. May I encourage the Secretary of State to do what he can to ensure that they do not push back on it?
Mr Davey
I pay tribute to my hon. Friend for the work he has done. He is absolutely right: we must stand up against people who prevent us from pursuing the consumer interest. It was ignored for far too long, but we are not going to ignore it. One of our reasons for arranging the consultation was that, although Ofgem could proceed with its own work and change licence conditions relating to bills and what is on them, we wanted to provide a statutory underpinning—a back-stop—to ensure that the process took place as quickly and smoothly as possible. I think that that is sending a very strong signal.
Oral Answers to Questions
Debate between John Baron and Ed Davey
Mr Davey
The Government have consulted on how we can change the measure of fuel poverty so that it is more exact and so that we can ensure that we tackle the worst fuel poverty. The previous Government could not even measure fuel poverty properly. As regards ensuring that the big companies give a fairer deal, Ofgem’s retail market review is considering everything from standards of contact to improving billing and tariff simplification. Those and other measures will help people.
Mr John Baron (Basildon and Billericay) (Con)
The Government have accepted the billing stakeholder group’s recommendation that information should be put on all energy bills, by this Christmas, detailing how much a customer could save if they were on that company’s cheapest standard direct debit tariff. Understandably, Ofgem cannot confirm whether it will implement that, so what will the Government do to raise the matter with the Prime Minister and the big six in any forthcoming deliberations?
Mr Davey
First, I thank the hon. Gentleman for all his work on this important issue. He has made a valuable contribution. We are raising the matter, because we take it very seriously. Ensuring that consumers have the right information so that they can switch to cheaper tariffs is very important.