Annual Energy Statement

Neil Carmichael Excerpts

Thursday 31st October 2013 Commons Chamber

[Mr Davey]

Ofgem’s retail market review looked at different approaches to standing charges, and there is a debate on them. However, there is a danger that taking them away will lead to a single unit price model—which some people think is better—that will hit low-income households that are high energy users. We therefore need to consider the full distributional consequences. We will keep these matters under review, as we should.

[Neil Carmichael (Stroud) (Con)]

Increasing capacity is definitely the key to this problem. Ensuring, through the Energy Bill, that we have more competition is part of the story, but would that not be reinforced by strengthening the role of a single energy market to attract more investment and drive even more competition into the system?

[Mr Davey]

My hon. Friend is right. My right hon. Friend the Prime Minister has been pushing the case for the single energy market at the European Council. Recently, I hosted a meeting of energy Ministers from northern European countries—the northern European energy dialogue—to consider ways to have better interconnections in the northern European grid, which will encourage downward pressure on prices.