Energy

Lord Grade of Yarmouth Excerpts

Thursday 31st October 2013 Lords Chamber

[Baroness Verma]

I reassure my noble friend that, yes, we have measures in place that will ensure that we have enough capacity to keep the lights on.

[Lord Grade of Yarmouth (Con)]

I, too, thank my noble friend for repeating the Statement. It was comprehensive, intellectually rigorous and resistant of soundbites, which is to be welcomed. My question relates to the regulator. The question of consumers switching between utilities is not a new concept. In the telecoms sector, Ofcom was quick to address the question of switching from one mobile phone provider to another. Was it a failure of the regulator or of the statutory powers and remit of the regulator that meant that this question was not addressed earlier?

[Baroness Verma]

My Lords, it is a failure of energy companies ensuring that consumers have easy-to-understand information. That has been a big part of the problem, as well as the fact that we have not pushed enough to get energy companies to be more transparent and accountable. First Utility has been one of the first companies to come forward, with E.ON, Scottish Power and SSE, to say that it will be leading the charge to try to make switching quicker and easier. We are inviting more energy companies to come forward to join us. The Secretary of State has made it very clear: we want to talk with all energy companies and we are keen to see their consumers’ bills go down. It will become apparent that those energy companies that do not want to do this will end up losing customers to those suppliers that are at the front of the game.