Energy: Action on Bills

Lord Reid of Cardowan Excerpts

Monday 2nd December 2013 Lords Chamber

[Baroness Verma]

I thank my noble friend for her endorsement of the Statement. As with all measures, we need to be able to ensure that people are kept warm and safe and that they are not paying over the odds for energy. There are measures in the Statement and measures that we are already undertaking that will help energy efficiency and help consumers to reduce their bills.

[Lord Reid of Cardowan (Lab)]

I thank the Minister for the Statement. In doing so, I repeat the question I asked her last week about the Government’s attitude to markets and, in particular, failing markets. Less than two months ago, we were told by no less a personage than the Prime Minister, and by almost everyone else who has been briefing on his behalf, that any intervention in the energy markets was at best a return to the 1970s and at worst Marxism—presumably a return to the 1870s. Today, in her introductory remarks—I think I am quoting her correctly—the Minister talked about “forcing transparency on the market” and later referred to “bearing down on prices”. Will she clarify for us whether the Government now accept that it is not only proper and reasonable to intervene in a failing market but it is the duty of government so to do in order to protect people from a faulty market?

[Baroness Verma]

My Lords, I shall respond to the noble Lord as I probably responded to him last time. We need to ensure that there is greater competition. I hate to go back to my earlier point, but under the previous Administration, the number of energy companies reduced from 14 or 15 to six. The big six is a Labour creation. If we have less competition, it is because that competition was taken out by the previous Government. We have now seen seven new entrants in our energy mix. We will see a greater number of entrants coming forward because we have created confidence for smaller providers to come into the marketplace. We do not need intervention as the noble Lord expects. We need to ensure greater competition.