Energy: Domestic Tariffs

Lord Naseby Excerpts

Tuesday 19th December 2017 Lords Chamber

Asked by

[Lord Naseby]

To ask Her Majesty’s Government whether they plan to review their policy on capping domestic energy prices in the light of measures taken by the energy industry to change tariffs to help those most at risk, and to increase competition.

[The Parliamentary Under-Secretary of State, Department for Business, Energy and Industrial Strategy (Lord Henley) (Con)]

My Lords, it is the Government’s intention to legislate, and a draft Bill is currently undergoing pre-legislative scrutiny by the Business, Energy and Industrial Strategy Select Committee. The Government will consider the committee’s report before making the final decision on introducing the Bill. The Competition and Markets Authority found a very significant detriment to consumers, and it will take meaningful and long-lasting reform to be assured that there is effective competition across the whole of the market.

[Lord Naseby (Con)]

My Lords, I find that a very interesting Answer. When will Her Majesty’s Government look at what Ofwat has done for water consumers, to their benefit, and decide that Ofgem can do an equally good job? Surely Her Majesty’s Government can see that there may not be perfect competition, but there is certainly a lot of competition, with new entrants coming in all the time, and there is an extensive number of schemes to help the disadvantaged. How can a totally uncosted subsidy help when all it will do is disrupt the market even further, above and beyond what is already happening through the Government’s green taxes?

[Lord Henley]

My Lords, Ofgem does a very good job, just as my noble friend has made it clear that Ofwat does a very good job. We agree with Ofgem that the energy market is not working for all consumers, and we are determined to address the detriment suffered by those overpaying for their energy. Because the market is not working, we feel that it is necessary to consider introducing a Bill, which is why we have introduced the draft Bill and sent it to the appropriate Select Committee. When the committee has produced its report, we will consider the appropriate way forward and introduce legislation if necessary. That legislation will be temporary, and we hope that afterwards the market can work slightly better.