Oral Answers to Questions

Debate between Michael Fallon and Graham Stringer

Thursday 3rd April 2014 Commons Chamber

[Graham Stringer (Blackley and Broughton) (Lab)]

12. What recent assessment he has made of the effectiveness of Ofgem.

[The Minister of State, Department for Business, Innovation and Skills (Michael Fallon)]

The Government formally reviewed Ofgem’s role in 2011. Since that review, we have strengthened its powers to investigate and penalise market manipulation, and Ofgem has taken firm action to improve competition, including reforms of the retail and wholesale markets. Last week it proposed referring the energy markets to the competition authorities—the first ever such reference.

[Graham Stringer]

Finally, one might say, Ofgem has referred the six big energy companies to the Competition and Markets Authority. If the Minister reads the small print in Ofgem’s statement, however, he will find that it does not cover power generation. Is that not another failure by Ofgem to deal with the problem properly? It is not possible to deal with the issue if power generation is left out. Is it not time that Ofgem had the plug pulled on it and we had a real regulator with teeth?

[Michael Fallon]

I am afraid that the hon. Gentleman is not right about that. This reference is of the energy market; it includes power generation. Simply winding up Ofgem would mean that another regulator had to be set up in its place. Labour set up Ofgem, and now they want to abolish it, but they would have to set up another regulator. They seem to have a quango fetish.

Oral Answers to Questions

Debate between Michael Fallon and Graham Stringer

Thursday 27th February 2014 Commons Chamber

[Graham Stringer (Blackley and Broughton) (Lab)]

8. What recent progress has been made in the roll-out of smart meters; and if he will make a statement.

[The Minister of State, Department of Energy and Climate Change (Michael Fallon)]

Good progress is being made. The first technical specifications have been confirmed and some energy suppliers are installing smart meters already, although most consumers will be offered smart meters from next year. We are on track to complete the national roll-out to 30 million premises by 2020.

[Graham Stringer]

Since the original Mott MacDonald assessment of smart meters, their cost has doubled. It is also estimated that half the meters already installed will have to be removed before 2020. Are we not heading for another IT disaster?

[Michael Fallon]

Absolutely not. I am a little surprised at the hon. Gentleman’s criticism, given that his colleague the right hon. Member for Wentworth and Dearne (John Healey) told this House on 23 April 2012 that our plan

“has a number of world-first features.”—[Official Report, 23 April 2012; Vol. 543, c. 782.]