John Bercow
Main Page: John Bercow (Speaker - Buckingham)Energy Price Freeze
John Bercow Excerpts
Caroline Flint
I have to say to the Secretary of State that I am very disappointed with that intervention. [Interruption.]
Caroline Flint
Beyond the customary theatrics that sometimes dominate debate in this House, for which we should all admit our responsibility from time to time, I would say that if one looks back over Hansard it is clear that for the past two years, whether at DECC questions, in Opposition day debates or in urgent questions, I have been putting forward measures to reform this market, including a break-up of the way in which the companies run their generation and retail sides. We have said in this House—I will obviously send this information to the Secretary of State—that we need to create, as we did with the networks, a separation in relation to the way in which the companies run things. That does not necessarily mean having two companies, but it does mean having two different legal entities. The Secretary of State is, in effect, saying, “Oh, it’s all right—it’s fine.” We have made this proposal time and again, and it has been reported in the press time and again. It is unfortunate that he lets himself down with that sort of intervention.
Caroline Flint
No, I will not give way.
We currently have the problem that when wholesale costs increase, bills go up like a rocket, but when wholesale costs fall, bills fall like a feather, if at all. In a properly competitive market, cost reductions would be passed on as quickly and as fully as cost increases. I urge the House to support the proposal in the motion to establish a new regulator with the power to force companies to cut prices when wholesale costs fall. I know that the president of the Liberal Democrats supports that proposal, because he said so to the audience and viewers of “Question Time” when I sat next to him on the panel a few weeks ago. I hope that the Secretary of State will confirm his party’s support for the proposal in his speech.
That is what real action looks like. That is what a Government who put the interests of ordinary people ahead of the energy companies would look like. What a contrast it is with this Government: a Government who pretend to put everyone on the cheapest tariff, even though 90% of people will see no benefit, but who refuse to put all over-75s on the lowest deal; a Government whose only answer is to tell people to shop around, even though switching levels have fallen to an all-time low, as people have lost faith with the market; and a Government who want to roll back the very measures that will insure us against rising prices in the future because they are too weak to stand up to the energy companies today.
Let us remember that 60% of the levies that the Government are rushing to blame were introduced by them. It was the Chancellor of the Exchequer who introduced the carbon floor price, which leaves British consumers and industry paying over and above what is paid by our European neighbours for energy. They talk about value for money, but it is they who designed the energy company obligation—a scheme that requires 53 pieces of information to be submitted for one measure to be installed. When they talk about moving policy costs from people’s bills to people’s taxes, let us remember that it was this Government who abolished Warm Front and now have the unenviable record of being the first Administration since the 1970s not to have a publicly funded energy efficiency scheme.
Today’s motion might refer only to energy prices, but it is about much more than that. It is about who our country is run for. Is it a country that works for hard-working people or are we settling for a country where only a few at the top do well and everyone else struggles? The Opposition know that the first and last test of economic policy is whether living standards are rising for ordinary people. Today, the House faces a choice: a choice between whether it is people’s bills that will be frozen this winter or their homes; a choice between whether we reform broken markets or defend them; a choice between whether we stand up for the 60 million people who live in this country or the big six energy companies, for the 2.4 million businesses or the big six energy companies. The reality is that if we do not fix this broken market, nobody else is going to. Today, in this House, we have it within our power to provide real help now to millions of people who are facing the cost of living crisis and to reform the energy market to deliver fairer prices in the future. I commend the motion to the House.
Mr Speaker
Before I call the Secretary of State to reply for the Government, I remind the House that in consequence of the large number of Members who wish to speak, I have imposed an eight-minute limit on Back-Bench contributions.