Domestic Gas and Electricity (Tariff Cap) Bill

Debate between Patricia Gibson and Bill Grant

3rd reading: House of Commons & Report stage: House of Commons
Monday 30th April 2018 Commons Chamber

[Patricia Gibson]

I thank the hon. Gentleman for that clarification. I appreciate that such tariffs will benefit some consumers—I do not think anyone would deny that—but I question whether the system would be flexible enough to benefit all families with children, and others whose energy use cannot be as flexible as they might like.

The amendment to ensure that customers must benefit from the cap by at least £100 seems very arbitrary and risks unintended consequences. I agree with the hon. Member for Wells about that, and with my hon. Friend the Member for Kilmarnock and Loudoun (Alan Brown). There is widespread concern that the big energy companies will use exemptions and green tariffs to ensure that they meet the target.

It is essential that the Bill delivers for consumers and that the period of the cap is used to deliver a fairer, more competitive market for consumers. It must deliver a change for consumers who have been overcharged for too long. There is consensus that the energy market is broken and needs to be fixed, which is why the Bill was introduced in the first place. It enables us to begin to do that, but we must ensure that we get it right and that there are no unintended consequences for the very consumers whom we seek to protect and assist. I know that the Minister will be mindful of that. We need to ensure that consumers benefit from action on this issue after the tariff is lifted in 2020 or 2023.

The launch of the independently chaired commission for customers in vulnerable circumstances by Energy UK in January will report on its findings and recommendations on energy companies, the Government, regulators and consumer groups towards the end of this year. I hope that the Minister or the Secretary of State will note that as we approach the end of the tariff cap, so that the voices of consumers can feed directly into the process of ensuring that they are offered as much protection as possible as the broken market is improved to become more fair and transparent.

[Bill Grant (Ayr, Carrick and Cumnock) (Con)]

It is a pleasure to follow the hon. Member for North Ayrshire and Arran (Patricia Gibson).

It is clear that the energy market is not working for the consumer, and with that in mind, I am pleased to support the Bill. However, I firmly believe that these additional measures must be temporary. Permanent Government intervention in the energy market of the kind that is proposed in new clause 1 is, I believe, unnecessary. Indeed, things are already changing. As recently as 2010, there were only 13 energy suppliers in the United Kingdom; now there are well over 60. Independent suppliers are growing and, rightly, posing new challenges for the big six. They already account for some 20% of the dual fuel market.

The basis of healthy competition is enabling consumers to go elsewhere with relative ease if they find a better deal. Nearly 20% of households a year already switch suppliers. By making switching quicker and easier, we can make that figure even higher and force big suppliers to stop taking long-standing customers for granted as they have done for many years.

There are now about 10 million first-generation smart meters in operation in the United Kingdom. While the roll-out is progressing, there is a long way to go to meet the ambitious target of 53 million by 2020. In the context of the Bill, a key element is the roll-out of the SMETS 2 meters, which is due to begin this year. SMETS 2 consumers will benefit from quick and easy switching, and the meters should be intelligent enough to identify the lowest tariff. They have the potential to be a real force for competition in the energy market. At that point, there will be no need for the price cap, which is why it would not be prudent to introduce a permanent relative cap. It would be bad for customers, and it would work against the positive changes that will be made over the next few years.

New clause 1 is the product of a belief that markets simply do not work. As a Conservative, I believe that they can work. I note the progress that we have made, and the progress that we will make in the coming years. I acknowledge that the market needs the temporary cap, and I support the Bill as a means of protecting consumers, not only in my constituency but throughout Scotland and throughout the United Kingdom. I am sure that it will contribute to a reduction in the very real fuel poverty that some people endure.

Scottish Welfare Powers

Debate between Patricia Gibson and Bill Grant

Tuesday 20th March 2018 Westminster Hall

[Bill Grant]

I do not think that I would pass judgment on the private sector system based simply on that one example. You can pick out poor examples from any system. Any identified problem will be rectified. The Government have been rectifying issues over a long period of time.

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

Are you seriously coming to the Chamber today and telling us that since you have been elected, no constituent has come to you to complain about the way their applications for DWP assessments have been treated? Is that what the hon. Gentleman is telling us? If he is telling us that, it must be the only constituency in Scotland where that is the case.

[Bill Grant]

I respect the hon. Lady’s intervention, but for clarity, I never indicated or suggested—sorry if you have interpreted it as such—

Banking in North Ayrshire

Debate between Patricia Gibson and Bill Grant

Wednesday 14th March 2018 Commons Chamber

[Patricia Gibson]

Thank you for that clarification, Mr Speaker. We do know that there has been jiggery-pokery and all sorts of nefarious goings on as to how these figures are presented. [Hon. Members: “Sleekit.”] My colleagues are shouting the word “sleekit” to me, which may well indeed cover the particular practice that is going on. The point is that it is not right for customers to be herded into the pen of online banking, a place where they have up to this point chosen not to go or have been unable to go. We are being forced down this road by banks as they shut up shop. If we insist that we do not want to bank online, the attitude we see from too many banks, including in conversations I have had with banking officials, who shall remain nameless, is that they collectively shrug their shoulders and more or less say, “Suit yourselves, but we are still shutting your bank.”

[Bill Grant (Ayr, Carrick and Cumnock) (Con)]

I thank the hon. Lady on several counts. I thank her for securing the debate, for the good work that she and her fellow councillors have done in her constituency to hold RBS to account and for using the word “jookery-pawkrie” —the “jiggery-pokery” that I can understand.

[Bill Grant]

I am left-handed and I am from a different party as well. Will the hon. Lady join me in expressing dismay that none of the 10 banks that was given that reprieve was from Ayrshire? Indeed, the 10-month reprieve is simply a stay of execution and it is derisory for the people of Scotland. RBS could do better for the people, who have been customers for generations. It was a world leader and it has let down the people who made it.

[Patricia Gibson]

The hon. Gentleman is right that giving 10 banks a reprieve is not enough, and I am of course disappointed that none of them is in Ayrshire. I wish the banks that have been reprieved well, but I wish that we could add to that list the other 52 in Scotland that are earmarked for closure. If we could give a reprieve to the banks in my constituency, I am sure that we would make every effort thereafter to persuade RBS that the reprieve should be permanent. Obviously, the goal would be to save every bank, but I shall come back to that later because the Minister is looking at me with a bit of alarm.

I would throw one question out there in respect of digital exclusion. The banks are fond of telling us that we do not need to have branches and that we can bank online. I would particularly like to know what RBS’s advice would be to digitally excluded customers. Where do they go when the last RBS in their town closes? How do they access banking services?