Energy Prices

Lisa Cameron Excerpts

Thursday 16th March 2017 Commons Chamber

[Dr Lisa Cameron (East Kilbride, Strathaven and Lesmahagow) (SNP)]

I would like to thank every single hon. Member for their contribution today. In particular, I thank the hon. Member for Weston-super-Mare (John Penrose) for bringing the issue of energy prices and the treatment of consumers to the House, via the Backbench Business Committee.

The big six have a lot to answer for. Rewarding long-term and loyal customers with the highest tariffs is simply appalling. Many of these individuals are elderly, vulnerable or disabled, have learning disabilities or mental health problems and can least afford them. When my own grandmother was transferred to hospital in her 90s, we examined the tariff she was paying for. It was about two times higher than what we were paying. Pensioners have a tight budget and may be frail and very elderly. They rely on heating to prevent pneumonia. How can these companies sleep at night?

There has been a great deal of talk about switching, and why we do not do it more. I hope I am not the only person who has been bamboozled by energy tariffs. I have a doctorate, but I find the system absolutely incomprehensible and the tariffs incomparable. I have tried on a number of occasions to compare day rates, night rates and standard daily charges, but without a PhD in mathematics, it is all but impossible. On two occasions I switched rates to save money, and then found that my bill had increased. I cannot help thinking that the system has been made over-complex for people on purpose.

The hon. Member for Weston-super-Mare has suggested a relative energy cap to help those who are currently being mercilessly ripped off. That proposal is apparently supported by a number of competitor brands, and I urge the Minister to consider it. It may be an interim solution, as has been said, but it will save customers—our constituents—money. Our focus should, indeed must, be on them. The hon. Member for Hartlepool (Mr Wright) mentioned the exorbitant price differential if consumers make the wrong decision, pointing out that the big six often do not act in the interests of customers.

[Mr Jim Cunningham (Coventry South) (Lab)]

Over the years the House has had many debates about the big six, but is it not time for a proper inquiry into how they actually operate? It seems to me that they are a cartel that fixes prices most of the time, and at the end of the day the hon. Lady’s constituents and mine suffer as a result.

[Dr Cameron]

That is an important point. It has been made clear repeatedly today that many Members feel that there is a monopoly, and that consumers must be put at the heart of energy pricing. The hon. Member for Hartlepool described the difficulties that people have experienced in switching suppliers, and pointed out that, while energy costs have fallen, prices have been hiked. That in itself is an absolute disgrace.

Mention has been made of smart meters, which, although they help individuals to monitor energy usage, appear to place responsibility on consumers, as though they were using too much, when in fact they are paying too much. Smart meters are not the sole answer, and companies must step up and take responsibility.

My hon. Friend the Member for Na h-Eileanan an Iar (Mr MacNeil) has asked me to point out that fuel poverty rates in the Western Isles are higher than those in any other local authority area in Scotland. The announcement from SSE that it will increase energy prices by 14.9% is a huge blow to his constituents. What measures will the Government take to address the issues that are being faced exponentially by those in island and rural communities?

The hon. Member for Brent Central (Dawn Butler) said that “just about managing” families were being most affected, and that the Government were not standing up for their rights. She also rightly drew attention to the impact of fuel poverty. In an excellent speech, the right hon. Member for Don Valley (Caroline Flint) discussed the levels of dissatisfaction among customers throughout the United Kingdom, which she said should ring alarm bells for the Government. She emphasised that those who were struggling to pay were paying the most, and that, meanwhile, company profits were increasing. The hon. Member for Bristol East (Kerry McCarthy) spoke of Bristol Energy’s contribution to fair pricing locally, and the level of local fuel poverty. She was right to highlight her constituency concerns.

My hon. Friend the Member for North Ayrshire and Arran (Patricia Gibson) described the situation in Scotland, particularly in rural and northern areas. She said that it could take 21 days to change supplier, which in itself was putting people off—the process is inflated. She called for an extension of the safeguard tariff, and said that the Government should consider the need for reductions in the percentage of consumers on the standard tariff within a set time frame. There are rural areas in my constituency that are still off the grid. Much more needs to be done to support rural communities that have little choice when it comes to costs and types of energy. I urge the Minister to address that, because those communities are among the worst affected by price changes. The hon. Member for Bradford South (Judith Cummins) spoke of soaring energy prices, and said that the poorest suffered disproportionately.

As for Scottish Government policy, a draft Scottish energy strategy is now open for consultation, and I encourage those who are interested to give their opinions. The Scottish Government remain committed to putting consumers at the heart of their policy, and to their renewables targets. I urge the Minister to act, because we do not need a postcode lottery. Everything that we have heard today makes clear that the energy sector needs reform and needs it now, and that that reform must be made to serve customers rather than itself.