Steve Baker
Main Page: Steve Baker (Conservative - Wycombe)(9 years, 3 months ago)
Commons ChamberRead Full debate Read Hansard Text
Mr Davey
My hon. Friend is right that network costs account for about a fifth of the average household bill. Of course, the Energy and Climate Change Committee, which he chairs, is looking into this issue and has taken evidence on it. We look forward to receiving his report. If one looks at an historical analysis of network costs as a proportion of energy bills, they have been coming down steeply since privatisation. We obviously want Ofgem to continue to bear down on them, and our regulatory regime is one of the strongest in the world.
Steve Baker (Wycombe) (Con)
My right hon. Friend the Secretary of State has already explained the incompetence of a price freeze. Does he agree that the best way to help families is to use the traditional liberal approach of competition to drive down prices?
Mr Davey
My hon. Friend is right: a liberal approach is definitely the best. In the spirit of the coalition, we have together managed to bring down energy bills by reducing policy costs by £50, something opposed by Labour. It is often forgotten that because we have liberal markets in Britain, the UK enjoys the lowest domestic gas prices in the EU15.