Energy Bills

Phillip Lee Excerpts

Monday 2nd December 2013 Commons Chamber

[Mr Davey]

As I recall, the hon. Gentleman asked me whether I had raised the matter in a previous meeting. Since being Secretary of State, I have raised the issue of profits and prices with the big six energy companies on many occasions.

[Dr Phillip Lee (Bracknell) (Con)]

In 2010, EDF sold its three English networks for £5.8 billion at a 27% premium on Ofgem’s value. In 2011, E.ON sold its networks at a 40% premium. Does the Secretary of State think that returns allowed on UK-regulated energy networks have been and are too generous? If so, is Ofgem fit for purpose.

[Mr Davey]

Ofgem is fit for purpose. It needs to ensure that the returns on network business are fair to enable profits, but not beyond that. That is why it has acted. It has asked the network companies to justify the current investment programmes that they have put to it.