Annual Energy Statement

Nick Smith Excerpts

Thursday 31st October 2013 Commons Chamber

[Mr Davey]

My hon. Friend makes an important point. If we do not have sufficient capacity, not only will that threaten security, but it will cause spikes in prices. The underinvestment that we had under the last Government has caused this problem, and we are having to run to catch up. We have seen £35 billion of investment since 2010, and we have a lot more investment in the pipeline. We have announced Hinkley Point C as the first nuclear reactor in a generation, but we will have to do more to put right the mess that Labour left us.

[Nick Smith (Blaenau Gwent) (Lab)]

Wholesale costs are up 1.7% but bills for households will go up by 9%. Does the Secretary of State think that is fair?

[Mr Davey]

We would not want more competition in the market if we were happy with what is going on, but the hon. Gentleman’s figures are not right. It depends on how wholesale costs are defined in any one year. Ofgem says that on one definition they have gone up by more than 8%.