Domestic Gas and Electricity (Tariff Cap) Bill

Debate between Oliver Letwin and Caroline Flint

2nd reading: House of Commons
Tuesday 6th March 2018 Commons Chamber

[Caroline Flint]

Absolutely, and I am going to come on to renewables. Ministers should beware of any proposal to exempt green tariffs or low-carbon tariffs from the price cap, and let me be clear why. In 75% of days in 2017, wind power supplied more energy than coal power in the UK. Nuclear and renewables are central to our power output in the UK energy market and the generators are well rewarded for that. The notion that any energy provider should charge a premium for so-called green tariffs does not stand up to scrutiny. Consumer support for 100% green energy is welcome, but the idea that they should pay the most expensive tariff cannot be justified. I therefore hope that the Secretary of State will rule that out and deliver a comprehensive cap.

[Sir Oliver Letwin]

I am listening with increasing admiration to the right hon. Lady’s speech, which reminds me of why there was once a Labour party with which I had a great deal more sympathy than I do at present. I strongly agree with what she says about green tariffs. We want to promote green energy, but to do so on a basis that is economically rational.

[Caroline Flint]

I welcome the cross-party support that continues to blossom on this issue.

I urge Ministers to ensure that Ofgem is equipped with all the powers it needs to act as a consumer champion, and to deliver both a price cap and penalties for corporate misbehaviour. I have not been uncritical of Ofgem. For too long the regulator did not hold the big six to account for poor customer service. Where fines were issued, companies were allowed to strike a deal to use the so-called fine to subsidise tariffs for new customers—there was nothing for their loyal customers stuck on default tariffs. Thankfully that has changed.

We saw last week the CMA having to rule on a challenge by SSE and EDF against Ofgem when they tried to modify industry rules. Ofgem determined that those modifications would have led to consumers paying a £120 million rebate to generators and said no. Ofgem was immediately challenged. In this instance, the CMA backed Ofgem and the consumer interest was protected, but let us be under no illusion: there is a constant veiled threat that the energy giants will contest its decisions. We need to be certain that Ofgem has the powers and remedies it needs under the Bill so that it can do the job this House expects and does not become a scapegoat for failure.

Finally, may I urge Ministers to use the period of the cap to review the structure of the energy market? Good regulation, fairness and innovation from existing and new players must all be part of a reshaped energy market of the future. Let us get on with it. The Bill has my support; let us give Ofgem the power to act and cap unfair energy bills.

European Union (Notification of Withdrawal) Bill

Debate between Oliver Letwin and Caroline Flint

3rd reading: House of Commons & Committee: 3rd sitting: House of Commons & Report stage: House of Commons
Wednesday 8th February 2017 Commons Chamber

[Caroline Flint]

I absolutely agree with that statement by my right hon. Friend the Member for Birmingham, Hodge Hill (Liam Byrne). We should be having a more grown-up discussion about the mistakes that have been made and how we navigate what is for us all uncharted territory. A little humbleness in all that would not go amiss.

[Sir Oliver Letwin]

rose—

[Caroline Flint]

I will be two seconds. [Interruption.] Okay, I give way to the right hon. Gentleman.

[Sir Oliver Letwin]

I am most grateful to the right hon. Lady, who is making a very serious speech. Does she agree that as part of the grown-up discussion to which she refers, Members on both sides of the House need to have the courage to explain that migration of many kinds is beneficial to our economy and our society, in a way that we have not done so far?

[Caroline Flint]

I totally agree with that, but perhaps part of the problem is that often we talked about that a lot, to the exclusion of sometimes talking about the ways in which communities were feeling that it was not working for them. That is part of the problem. We in politics all know that we create white noise, but how much of it actually gets through to the public? Let us remember that every single region in England, outside of London, voted to leave. If we avoid these important issues, we do so at our peril. For me, the biggest danger is that we let the extremes of the far right occupy ground that allows them to influence the debate, and I hope none of us would want that.

I wish to make some progress and address briefly some of the amendments and new clauses that are important for both sides of the House to consider. Whether or not they are passed tonight, we will see, but I hope that their content and some of the contributions that are made will be taken seriously by Ministers and given some attention when they respond.

It is important, and in the UK’s interest, that we present ourselves not as a nation retreating from a successful international union, but as a nation that remains determined to uphold that union’s best values. New clause 7 speaks to that aim, as it would commit the Government, in advance of any negotiations, to having regard to the legislation shared throughout the EU on preventing and tackling tax avoidance and evasion—a matter to which I have given considerable time over the past few years.

In September last year, the UK put itself at the forefront of the international debate on public country-by-country reporting. Our stance should be, as it was then, that the best and biggest international companies with any substantial presence in the UK should have no fear of openness, and no fear of publishing where they do business and pay taxes. In that spirit, the UK should pledge, ahead of the negotiations, to comply with the EU code of conduct on business taxation. We should do so not because we are required to, but because we want to uphold the standards on which, in many ways, the UK has been leading. It is unfortunate that some of the Prime Minister’s comments seem to rail against some of the positive efforts that have been made to tackle tax evasion and avoidance and some of the issues relating to tax havens. It would be a huge step backwards if we were seen to step away from something important and on which we could be leading the world.

New clause 100 is a modest provision on equality and women’s rights, yet its values reach to the core of what modern Britain should be about. It is modest because it simply asks that during negotiations the Government have regard to the public interest in maintaining employment rights and co-operation against trafficking, domestic violence and female genital mutilation. It suggests a cross-departmental—it could be cross-party, if we want—working group to recommend appropriate legislation on equality and access to justice. The values are clear: it asks only for what we already have, but it also asks the House to embrace the things we value and to make it clear that none of them will be sacrificed during our departure from EU membership.

New clause 163 is about consultation with the English regions. We have heard much in this Chamber about the importance of a meaningful dialogue with the devolved Administrations, and I endorse that approach. I have argued publicly that the best way forward is for the Government to acknowledge that we are in uncharted waters, and that the Prime Minister should be seeking cross-party agreement and having regular meetings with other party leaders. I should not need to remind her that, like me, her Government argued to remain. The decision of the British people on 23 June was an instruction not just to the Prime Minister and a handful of Ministers, but to all of us in this House.