Cost of Living
Debate between Mike Crockart and Jim Shannon
Mike Crockart (Edinburgh West) (LD)
It is a great pleasure to speak in support of the Queen’s Speech.
The Government recognise that household budgets are under extreme pressure. I am happy that we are taking action to support households with the cost of living. In the little time available to me, I will concentrate on one aspect of those costs: the cost of energy. The consumer group Which? recently found that 82% of consumers list the cost of energy and fuel as a top financial concern. It matters not just to fuel-poor households, but is a key issue for millions throughout the UK, including many small businesses. That is why I am glad that the Energy Bill will introduce radical new measures to make energy tariffs fairer and to make energy suppliers more accountable to consumers by strengthening Ofgem’s role.
By giving statutory backing to Ofgem’s retail market review proposals, we will ensure that customers receive the best deal on their energy tariffs, which will mean a radical reduction in the number of energy tariffs that are offered to consumers. That will be a huge improvement on the old regime, in which the hundreds of complex tariffs have led to confusion and a complete lack of transparency. Under the reforms, energy companies will be legally obligated to place households on the cheapest tariff for their individual payment and tariff preferences, and to provide households with relevant personal information.
Jim Shannon
Does the hon. Gentleman feel that competition provides the motivation to reduce prices? In Northern Ireland, where there is not the same competition, energy costs for industries and businesses are 30% or 40% higher. That is an example of where competition could bring prices down.