Lisa Nandy
Main Page: Lisa Nandy (Labour - Wigan)
Lisa Nandy (Wigan) (Lab)
I welcome the action that the CMA recommended for prepayment customers, but I urge the Secretary of State to heed the words of my hon. Friends who urged her to go further. I am sure that she is as angry as I am about the treatment of these customers. I am sure she is also as angry as we are about the treatment of 70% of customers who have been overcharged to the tune of £1.7 billion a year. The Energy and Climate Change Committee said that the Secretary of State’s
“Sudden and numerous policy announcements…lack of transparency…insufficient consideration of investor impacts…Policy inconsistency and contradictory approaches”,
coupled with the
“lack of a long-term vision”,
have raised the cost of investing in UK energy by £3.14 billion a year. Given that she is costing bill payers almost twice as much as the big energy companies, will she refer herself to the CMA?
Amber Rudd
Let me start by answering the key point that the hon. Lady makes about the 70% of consumers who are not on prepayment meters and are overpaying. The central way to address the 70% is to make sure that there is more competition in the market. When we came into office in 2010, there were six suppliers; there are now 31 new independent suppliers. Switching times are now down to 17 days and, with Ofgem’s guidance, we hope to move to same-day switching by 2018. All those measures will enable consumers to access a competitive market.
The hon. Lady’s comments regarding the Energy and Climate Change Committee are a random selection of some of the Committee’s thoughts. I do not share its views. In fact, I have been advised by a number of people who have attended the Committee and by major investors that they take great comfort from the clear direction that has been set out from the Government Benches for future energy policy.
Lisa Nandy
It is extremely disappointing that after this lengthy investigation, the Secretary of State has decided to blame customers for not switching and to let energy companies off the hook, so perhaps I will try another one. The CMA inquiry has also found that price comparison websites are taking tens of millions of pounds a year in commission from the biggest energy companies. In 2014 alone, they were paid £24 million. Following her announcement that she will not hesitate to take forward the CMA’s recommendations, does she plan to implement the recommendation to allow the same websites to now deliberately hide the cheapest deals from customers?
Amber Rudd
The hon. Lady has misunderstood me. There is no blame on customers and no blame is being apportioned. We are saying that the CMA has provided a wake-up call to the energy companies, which now need to take action to address competition within the area. We are confident that its recommendations will be key to delivering the competition and low prices that Labour so clearly failed to deliver before 2010.
Amber Rudd
We already have a price comparison website to which we refer people. The “be an energy shopper” website will then give customers a choice. I urge the hon. Lady to take a look herself and perhaps consider switching.
Amber Rudd
I very much agree with my hon. Friend that reliable switching between energy suppliers underpins a competitive energy market and, above all, puts consumers in control. That is why the time it takes to switch has already been halved from five weeks to two and a half weeks. We do not want to stop there, which is why we are working with Ofgem and the industry to deliver reliable next-day switching for consumers, with an aspiration to do this by 2018. We will introduce legislation to achieve that.
Lisa Nandy (Wigan) (Lab)
With fresh doubts over whether a new nuclear station will ever be built at Hinkley Point C, it appears that Britain’s energy security is now in the hands of the French and Chinese Governments. If the French Government decide not to offer up more money for the Hinkley project, will our taxpayers be on the hook or does the Secretary of State have a plan B?
Amber Rudd
I can reassure the hon. Lady that this proposal in Hinkley Point will be going ahead. I do not share her doubts. To further reassure her, let me tell her that although Hinkley Point is an important part of our low-carbon future, it is not the only nuclear initiative. If she had paid attention during the Budget, she might have heard the Chancellor announce further support for small modular reactors, which could also be an important part of a low-carbon future.