Oral Answers to Questions

Steve Reed Excerpts

Thursday 16th January 2014 Commons Chamber

[Mr Davey]

I am afraid that the hon. Gentleman was not listening. Ofgem’s proposals for the market maker obligation will have a big impact on the wholesale market. It will force the vertically integrated big six to tell competitors what they are prepared to charge and what they are prepared to pay for electricity in the forward markets. That will improve entrance, competition and transparency. The proposal of splitting the vertically integrated companies has real problems. It might work, but it could end up pushing up prices, which we do not want.

[Mr Steve Reed (Croydon North) (Lab)]

T1. If he will make a statement on his departmental responsibilities.

[The Secretary of State for Energy and Climate Change (Mr Edward Davey)]

The Energy Bill received Royal Assent on 18 December and is now the Energy Act 2013. I have published the electricity market reform delivery plan, which sets out updated contract terms and strike prices alongside wider reforms to the electricity market that could unlock additional investments of about £40 billion in renewable electricity generation projects up to 2010. Renewables investment is increasing fast, with renewable electricity generation more than doubling since the coalition came to power. This is a clean, green record that we are proud of.

[Mr Reed]

Nearly 6,000 households are living in fuel poverty in Croydon North and, according to the Government’s own figures, the gap between their bills and what they can afford has grown to almost £500. Given that their energy bills will go up by another £60 this winter, does not this show why nothing less than a price freeze and action to stop these companies overcharging again afterwards will do?

[Mr Davey]

First, fuel poverty got worse under the previous Government and has been coming down under this Government; secondly, we are changing the way in which we measure fuel poverty so that we can better target the people in deepest fuel poverty; thirdly, the energy price freeze would be worse for consumers because prices would end up going up; and fourthly, later this year we will publish the first fuel poverty strategy for over a decade, and it will really address the problems that the hon. Gentleman has raised.