Energy Price Freeze

Khalid Mahmood Excerpts

Wednesday 6th November 2013 Commons Chamber

[Caroline Flint]

That might be the price for the generator but it is not the retail price, and that is what is important in terms of competition and keeping pressure on. I am surprised that Scottish National party Members decided not to support the price freeze. They are on the side of the Prime Minister and the big six while my colleague Johann Lamont—Scotland’s Labour leader—and Scotland’s millions of energy consumers support the price freeze.

[Mr Khalid Mahmood (Birmingham, Perry Barr) (Lab)]

Does my right hon. Friend agree that while Government Members bicker about the structure of the energy companies, my elderly and infirm constituents will be perhaps be dying this winter because of the energy price hikes under that lot over there?

[Caroline Flint]

What is happening to people now is very concerning. All the consumer organisations and those from the fuel poverty lobby are extremely worried about the choices that people are making between heating and eating. The idea of putting on another jumper is an insult to those people, many of whom are older and more vulnerable residents who are not online and are in the group that does not switch. Switching is not going to happen as a result of entreaties from the Government, and we need more action on that.

--- Later in debate ---

[Mr Davey]

I am coming to the rigged market, but the market was rigged by the Labour Government. It is Labour’s big six and Labour’s market. We are changing and reforming it while Labour does nothing.

One thing that worries me about switching is that we need to ensure that it operates for the poorest in our country. The right hon. Lady and another hon. Member made the point that, sometimes, the fuel poor and many elderly people do not get the benefits of the market and are not helped by competition switching—the figures bear that out. We cannot just rely on switching; we need to ensure that it works for those people. That is why the Government have put so much money behind the Cheaper Energy Together scheme and collective switching, and why we are putting money behind the big energy saving network. We want to ensure that Age UK and the Citizens Advice Bureau go out into communities to offer advice to those people. That is how to ensure that the poorest in the land can get the best deals in our land.

[Mr Khalid Mahmood]

Is the Secretary of State aware that the poorest people cannot switch if they are in debt to the company they are with?

[Mr Davey]

Yes, I am aware of that. That is why we have raised the amount. Under Labour, it was about £100 or £150. With Ofgem, we have raised it to £500 to enable people to switch. I am afraid the hon. Gentleman is behind the times.