Annual Energy Statement
Debate between Lindsay Hoyle and Ed Davey
Mr Davey
My hon. Friend has asked very detailed questions. Let me refer him to two recent publications. At the end of last year I published a policy statement on interconnectors, because I think this is a critical issue that has been long overlooked, and Ofgem has published proposals for a new regulatory regime to facilitate investment in interconnectors. However, we will gather the information for which my hon. Friend asked specifically, and I will send it to him in writing.
Mr Deputy Speaker (Mr Lindsay Hoyle)
Finally, I call the irrepressible Thomas Docherty.
Energy Prices
Debate between Lindsay Hoyle and Ed Davey(10 years, 5 months ago)
Commons ChamberRead Full debate Read Hansard Text
Mr Deputy Speaker (Mr Lindsay Hoyle)
That is not a point of order. You have made your point, Mr Flynn, but it is up to the Secretary of State whether he wishes to give way. He is giving way now and again. It is not as though he could not hear you, so I suspect he is not giving way by choice.
Mr Davey
The House can probably see why I made that choice—[Interruption.] Frit? That is a joke.
The forward markets help competition, smooth prices for customers and make fixed-price deals possible. Under Labour’s proposals, there would be no more fixed-price deals for consumers—ironically, the area in which competition between companies is greatest. The plain truth is that this latest headline-grabbing, price-control state intervention is as unworkable and damaging as Labour’s last one. Just like under the last Labour Government, such policies would simply mess up our energy markets and hit consumers hard. Labour reduced competition and created the big six. We have had the hard task of clearing up Labour’s energy mess. This Government have reformed the energy markets and boosted competition so that the big six—created by Labour—are now being challenged like never before.
We have seen 12 new entrants into the market. The share of independent energy firms has risen from less than 1% to almost 6%—and fast. According to Energy UK, in May this year for the first time ever more than half of people switching switched to an independent supplier. Small suppliers have gained more than 1 million customers since May last year.
The Government have worked to help all consumers. We have been harder and more effective in working for consumers in just four years than Labour managed in 13. We have championed switching, acting to make it simpler, with fewer confusing tariffs and easier to read bills—all things that Labour never did. People now understand the choices they have and are more confident about switching. We have acted to speed up switching too. Ofgem this week confirmed that switching times will be cut in half by the end of the year, from the ridiculous more than five weeks that we inherited, and that we are on course for my objective of 24-hour switching within four years.
We have even acted to encourage new forms of switching. Labour talked about the collective principle, but never did anything about it. The Cheaper Energy Together firm is piloting initiatives around the country that have saved tens of thousands of people millions of pounds. Just today, in the latest collective switch—the Big Deal—we learned that customers on a typical standard tariff with a big six supplier could save £210 by switching to the new deal delivered for consumers who have come together to buy energy. That is a new deal from an independent energy supplier which entered the UK energy market only last year. That is competition working.
We are always looking to do more for consumers, to sharpen competition and to explore new business models. That is our approach to helping people cut their bills. At the next election, the choice on energy bills will be clear. People can either trust Labour politicians to fix energy prices for them with state intervention or they can trust the growing number of new, smaller energy suppliers which are already delivering for millions of people, taking on Labour’s big six with competition. People can opt for the right hon. Lady’s approach to improving our energy markets—policy on the hoof with 1970s-style price controls—or they could opt for the most detailed ever, in-depth inquiry into Britain’s energy markets by independent experts.
Above all, at the next election, people can vote for energy price freezes under Labour or back the cuts in energy bills our policies are now making happen. Labour and the Leader of the Opposition flunked energy policy when they were in office. We must not ever let them do that again to Britain’s energy system.
Energy Markets Competition Assessment
Debate between Lindsay Hoyle and Ed Davey(10 years, 8 months ago)
Commons ChamberRead Full debate Read Hansard Text
Mr Davey
The hon. Gentleman can do that by backing this reference by the competition authorities, which will ask all those questions. I say to him and his constituents that if they are worried now, they should look at the best buy tables and use the competition that is there now. I hope that, as a result of this reference, we will supercharge that competition. There is choice now, because this Government have brought it in.
Mr Deputy Speaker (Mr Lindsay Hoyle)
Last but certainly not least, the voice of Hyndburn, Graham Jones.
Oral Answers to Questions
Debate between Lindsay Hoyle and Ed Davey(10 years, 10 months ago)
Commons ChamberRead Full debate Read Hansard Text
Mr Davey
I can agree with the hon. Gentleman on the cost issue and that we need reform in the wholesale market because of the vertically integrated model, but I have to remind him and Opposition Members that that model for the big six was created under the previous Government, and we are tackling the issue—
Annual Energy Statement
Debate between Lindsay Hoyle and Ed Davey
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. We must have very short questions in order to try to get everyone in. I understand how important this is.
Mr Davey
We are helping the fuel-poor and people who have problems with their bills through, for example, the warm home discount, which takes £135 off bills. We are publishing a guide. I hope that the hon. Gentleman and every right hon. and hon. Member will use it to help their constituents.
The hon. Gentleman talks about the wholesale market. The previous Government did nothing on competition in the wholesale market; they made it worse. This Government, with Ofgem, which Labour Members want to abolish, are taking measures to ensure there is far more competition in the wholesale markets. That is how to prevent the big six and their vertical integration models from pushing up prices. The Liberal Democrats are the party of competition; Labour is the party of the big six.
Mr Deputy Speaker (Mr Lindsay Hoyle)
Last, but certainly not least, I call Andrew Percy.
Energy Prices and Profits
Debate between Lindsay Hoyle and Ed Davey(11 years, 2 months ago)
Commons ChamberRead Full debate Read Hansard Text
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. The hon. Gentleman has been in this Chamber long enough to know that he should be asking a question rather than making a speech.
Mr Davey
I was not making phoney accusations, but giving the facts and the history. Labour may want to run away from its history, but we will hold it to its record.
Before I talk about the action that I and the Government are taking to help consumers, let me return to Labour’s three-point plan, having already demolished its first proposal to abolish Ofgem. The House might like to note that the abolition of Ofgem is not recommended by the Energy and Climate Change Committee.
Labour’s second proposal is to drop Ofgem’s long-awaited reforms of the wholesale energy market in favour of reintroducing the pool. It was Labour that abolished the pool just over 10 years ago, as my hon. Friend the Member for Sherwood (Mr Spencer) reminded the House, at an estimated cost of £1.4 billion. Labour said that is was not working—wait for it!—in the interests of consumers. Apparently things have changed. However, under the policies that Labour put in place after it abolished the pool, things have not got much better. Labour’s abolition of the pool produced the vertically integrated energy markets that we see today. Independent generators find it tough to get into the wholesale market because of the changes that Labour made. Independent suppliers do not find the wholesale market competitive enough to supply their customers. Electricity prices are therefore likely to be higher than they should be.
The Government and Ofgem want to fix Labour’s mistake. We do not want to reintroduce the pool, because that would be an expensive distraction and would not tackle the real problem, which is liquidity in the forward markets. We are going to tackle that with a well thought through package that is designed to drive competition to help consumers. Ofgem’s “secure and promote” proposals include the idea of a market maker and mandating the six vertically integrated companies—the big six—to publish the prices at which they will buy and sell up to two years in advance. That will help independent suppliers and large power producers.
As Secretary of State, I want to be sure that such reforms by the regulator work and have teeth, so that they drive competition. That was why I introduced into the Energy Bill reserve powers to act should Ofgem’s reforms not work. In other words, whereas Labour wants to go back to a failed policy that it got rid of itself, we are taking the tough measures needed to boost competition and help the consumer.
Energy Policy
Debate between Lindsay Hoyle and Ed Davey
Mr Davey
I work closely with my German counterparts, particularly Peter Altmaier, and I know that they are having a big debate in Germany called the “Energiewende” looking at how they will deal with the implications of reducing their nuclear industry. I am sure that my hon. Friend would understand that, given our close partnership with Germany, I would not wish to tread on Herr Altmaier’s toes, but this country is investing in nuclear. We are putting forward a regime that we think is attractive, and Hitachi’s £700 million investment in the Horizon project shows that international companies and international capital believe we have got it right.
Jobs and Growth in a Low-carbon Economy
Debate between Lindsay Hoyle and Ed Davey
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. There seems to be a lot of wind in these long interventions from both sides. Can we have shorter interventions? I should say to Front Benchers, and let Back Benchers know, that it looks like we will have to introduce a limit of six minutes because of the amount of time that has been taken.
Mr Davey
Thank you very much, Mr Deputy Speaker.
I know the hon. Member for Ogmore (Huw Irranca-Davies) takes a real interest in such issues and has a good track record in speaking up for them, but I do not recognise his points. My right hon. Friend the Member for Eastleigh (Chris Huhne) played a fantastic leadership role as Secretary of State for Energy and Climate Change. He set the Government’s ambitions at a far higher level than any previous Government. It is my job to deliver on those, which I intend to do.
Daylight Saving Bill
Debate between Lindsay Hoyle and Ed Davey(12 years, 10 months ago)
Commons ChamberRead Full debate Read Hansard Text
Mr Deputy Speaker (Mr Lindsay Hoyle)
That is not a point of order. It is up to the Minister how quickly he speaks. We do not place a limit on how fast or how slowly Ministers speak, and thank goodness for that.
Mr Davey
Thank you, Mr Deputy Speaker.
I should like to speak to the lead amendment in this group, amendment 59, which seeks to turn the Bill into a summer time extension Bill by changing the dates on which summer time ends. I think that the hon. Member for Christchurch realises that that would not be compatible with the EU directive on summer time arrangements, which has been in force for many years. The House might wish to reflect—
Mr Deputy Speaker (Mr Lindsay Hoyle)
Mr Chope, as a long-serving Member of the House, you know, as I do, that it is up to the Minister whether he gives way or not.
Mr Davey
I am showing the hon. Gentleman the courtesy that he showed to the other Members of the House who wished to speak on this matter.
The House might wish to reflect on the fact that, when the directive was passed, other member states changed their dates to coincide with those of the United Kingdom. I therefore do not think that we should change the nature of the Bill promoted by my hon. Friend the Member for Castle Point and amended in Committee. We should now proceed to debate the next group of amendments.