Oral Answers to Questions
Debate between Stephen Metcalfe and Amber Rudd
Stephen Metcalfe (South Basildon and East Thurrock) (Con)
12. What assessment he has made of the effect of recent trends in wholesale energy prices on household energy bills.
The Parliamentary Under-Secretary of State for Energy and Climate Change (Amber Rudd)
All the major suppliers have announced reductions to their standard variable gas tariffs in recent weeks in response to reductions in the wholesale gas price. The price of fixed-term deals has continued to fall, with the cheapest deal on the market £100 cheaper than the cheapest deal a year ago. The Competition and Markets Authority has made it clear that it will be looking further at the relationship between wholesale costs and retail prices as part of its investigation.
Amber Rudd
On this account, my hon. Friend is absolutely right: energy efficiency is indeed the best way to help people and that is why it has been a Government priority for the past few years. He is also absolutely right that the benefit is not only in keeping bills down, but in conserving our resources.
Stephen Metcalfe
Is my hon. Friend as surprised as I am that the Labour party is still pursuing its policy of a price freeze? If a price is frozen at a high level, surely the danger is that when the market settles at a lower level, my constituents will end up paying more than they are now.