Oral Answers to Questions
Debate between Matthew Offord and Ed Davey
Mr Davey
We are seeing a huge amount of activity in the North sea for offshore wind, and the beginnings for carbon capture and storage. About 18 months ago I brought together representatives from the oil and gas industry with representatives from the renewable industry working in the North sea. We need them to work together, particularly on issues such as regulation and the way infrastructure will develop. We need a longer-term plan, and we have been kicking that work off.
Dr Matthew Offord (Hendon) (Con)
T4. Will the Minister confirm to the House that it is not the policy of this Government, or indeed the next Conservative Government, to freeze energy prices just as the wholesale market starts to reduce in price?
Oral Answers to Questions
Debate between Matthew Offord and Ed Davey
Dr Matthew Offord (Hendon) (Con)
It is disappointing that there has not been a ministerial statement about Lima this week, particularly given the warning from the Union of Concerned Scientists that the negotiators have left too many contentious issues unresolved before the deadline in Paris. Will the Secretary of State advise us why the deal is so good?
Mr Davey
In fact, if one follows the details, one finds that we secured more than we expected to on going into the Lima summit. The reason is that there were some good negotiations, particularly on the information that countries will have to supply in what are known as—I am sure that the House will have followed this closely—their intended nationally determined contributions, which will be announced in the first quarter of next year. Nailing that down was the key issue in Lima and we did so.
Oral Answers to Questions
Debate between Matthew Offord and Ed Davey
Mr Davey
I think I have proved that I certainly do care, because we have done a lot more than the previous Government. Let me take up the point about the wholesale market. The previous Government did absolutely nothing; they created the big six that sell energy to each other. [Interruption.] Opposition Members do not like it, but it is a fact. Under this Government, Ofgem has brought in the market maker obligation, which creates the transparency that the Opposition were asking for. The Opposition failed, but we have succeeded.
Dr Matthew Offord (Hendon) (Con)
In my constituency, I have promoted the big switch, and I believe that the way to drive competition in the market is for people to vote with their feet. Will the Secretary of State advise the House and my constituents what actions he has taken to make it simpler and faster for them to switch to a better energy supplier?
Mr Davey
My hon. Friend makes an important point. The collective switch, of which that scheme was a part, has made big progress. We have seen a lot of initiatives and we are learning a lot of lessons. A lot of people are saving a lot of money because they are coming together for group purchasing.
The point about faster switching times is absolutely right, and that is one of the reasons why we called in the industry. We inherited a situation in which it took five and a half weeks, on average, to switch, which was unacceptable. We have now got commitments from industry, with Ofgem leading the way, to halve switching times by the end of the year, and we have a plan to get the time it takes to switch down to 24 hours. That is the right approach.