Retail Energy

Robert Jenrick Excerpts

Thursday 12th October 2017 Commons Chamber

[Greg Clark]

Yes. The detriment identified by the CMA was that people on standard variable tariffs were paying too much. It will be for Ofgem to determine what the level should be, but I have made it clear that I expect the whole of that detriment to be removed.

[Robert Jenrick (Newark) (Con)]

There are still some people who believe in free markets. It is a lonely life, but I try to bear it with good grace.

I am naturally suspicious of caps, especially when they are introduced by a Conservative Government. Following the question asked by my right hon. Friend the Member for New Forest West (Sir Desmond Swayne), can the Secretary of State reassure me that the energy companies will not simply bunch up all the prices around the cap and that what little competition—imperfect competition—we see in the energy market today will not be further eroded so that more customers are put off from switching in the complacent, mistaken belief that they will get the best price, thanks to Government intervention?

[Greg Clark]

It is possible—and it is the practice—that companies, large and small, on the basis of their purchases in the wholesale market, can make offers to consumers in the competitive side of the market. Nothing will change that. Companies can offer attractive deals and have the same prospects—in fact, growing prospects, as we roll out smart meters—of access to customers who are engaged with the market.