Energy Company Charges

Robin Walker Excerpts

Tuesday 4th February 2014 Commons Chamber

[Gregory Barker]

I certainly intend to do that, but I think the hon. Gentleman is being a little unfair. I have already mentioned the most important point of the speech, which is that we have asked Ofgem to consider the matter raised by my hon. Friends the Members for Harlow and for Chatham and Aylesford, and Members across the House, as part of the new competition test that was brought forward by the Prime Minister towards the end of last year. That will have real teeth and will report within a matter of months, if not weeks. We expect that in the near future, and Ofgem will be tasked to do it.

[Mr Robin Walker (Worcester) (Con)]

I am grateful to my hon. Friend the Member for Harlow (Robert Halfon) for securing this debate. I agree with the Minister that it is welcome that Ofgem will look into this matter and at competition, but Government policy is clearly to encourage switching. Will he address the point raised by the hon. Member for Liverpool, West Derby (Stephen Twigg) about energy companies charging people who want to move from a prepayment meter to a more ordinary tariff, and the outrageous variation in costs that can involve? One of my constituents was quoted between zero and £200 to have a prepayment meter removed. Does that not show that the system is not functioning properly as a competitive market, which is something Ofgem ought to investigate?

[Gregory Barker]

My hon. Friend is right and it is to his credit that he raises an issue that invariably afflicts the poorest and most vulnerable customers. In most cases, however, those on a prepayment meter can switch to a supplier that will not charge them for coming off it. Even if they are on a prepayment meter, they can still switch supplier.

It is important that we do not become carried away with the idea that the only response to getting a better deal for consumers is for Government to intervene with a one-size-fits-all solution. We saw what the result of over-regulation was under 13 years of Labour. Ham-fisted over-regulation does not actually benefit the consumer—it created the big six. We saw real choice for the consumer collapse under the previous Government through ham-fisted inappropriate regulation. The real interests of consumers will be served by a renaissance in competition. Relighting the fires of competition under this market will create real competition between energy companies.

I am glad to tell the House that since the coalition came to power we have seen movement back the other way, correcting the downward slide towards an oligopoly that we saw under the previous Labour Government. We are seeing new entrants to the market and unprecedented switching. In the last two months of 2013, an unprecedented number of customers switched their suppliers, hitting the companies that penalise customers where it hurts. People voted with their wallets and moved to get a better deal. This Government stand for empowered consumers—not just a lucky few, but everyone. We do not want a return to a nationalised industry; we want fair regulation for a fair energy sector.