Energy Markets Competition Assessment

Nia Griffith Excerpts

Thursday 27th March 2014 Commons Chamber

[Mr Davey]

My right hon. Friend is absolutely right. The Labour party created the big six, and now it seems to be worried about the fact that we are trying to take action. Its policy would entrench the big six, and would undermine the competition that we have delivered. The Labour party set up Ofgem, and now it wants to abolish it. People listening to the Labour party and looking at its record must be astonished that it has the gall even to pretend that it has a sensible energy policy.

[Nia Griffith (Llanelli) (Lab)]

In its report on energy prices and fuel poverty, the Select Committee said that Ofgem was failing consumers because it had not been properly using the powers at its disposal. Can the Secretary of State tell us what action he took as a result of that report, why prices have not fallen, and why consumers have repeatedly found themselves in financial difficulties because the Government did not act earlier?

[Mr Davey]

I think that recommendations made by the Select Committee to Ofgem are matters for Ofgem. In the Energy Act 2013, we set out a new approach for my Department, working with Ofgem, and provided for the introduction of a strategy and policy statement. We have made the reforms that we believe are needed to ensure that Ofgem works well with the Government in promoting competition. I am delighted to note that, although the Labour party still seems to want to abolish Ofgem, it supports its proposal for a market investigation reference.