Energy Bills

John Leech Excerpts

Monday 2nd December 2013 Commons Chamber

[Mr Davey]

There are likely to be a lot more, because we are extending the affordable warmth scheme: we are keeping its current rate for this year and next year and we are extending it for two years. That will mean more boilers in the homes of people who are fuel-poor.

[Mr John Leech (Manchester, Withington) (LD)]

I welcome any measures such as this that help families who are struggling with the increased cost of living, but in the longer term has my right hon. Friend considered a complete separation of the retail and wholesale markets and the impact that that would have on retail gas and electricity prices?

[Mr Davey]

My hon. Friend raises an interesting point. Certainly, we and, indeed, Ofgem have been looking at how we can reform the wholesale market in a way that deals with the problems. Ofgem’s suggested “secure and promote” reforms—which the Labour party appears not to have read—will ensure that we will have much greater competition in the wholesale market, which means that independent generators will be able challenge the big six and their vertically integrated model. There are, therefore, alternative models to ensure that we get competition working in the generation markets, which has not happened for far too long.