Energy and Climate Change Committee Report
Debate between Tim Yeo and Thérèse Coffey
Mr Yeo
It is true that Ofgem could have been a little more vigorous and robust in its response to the concerns raised about how profits are made in different parts of some of the vertically integrated businesses. This is a complex area, but more could be done to promote transparency without infringing the commercial rights that companies obviously want to protect for themselves.
We want the Government and energy companies to demonstrate that consumers are getting a fair deal and that vulnerable, fuel-poor households are protected. With fuel poverty projected to hit 3.9 million households and pressure on low-income consumers from rising energy prices, along with tariffs that penalise those who are struggling, there is clearly still a long way to go. My Committee is therefore today launching a further inquiry to investigate energy prices, profits and poverty. The inquiry will aim to answer one question: are energy companies offering consumers a fair deal? We are interested in what factors determine prices and what contribution they make to a typical bill; the extent to which the Government or regulator should intervene, if at all, to influence prices; whether Ofgem is protecting consumers and, if not, how it could improve; and whether other measures could ensure that consumers are paying fair prices. On profits, we wish to examine whether the public’s perception that prices are rising because of company profits is fair; why there is so much uncertainty about how much profit companies are making; how information about profits is communicated and whether this could be improved; and how better transparency and trust could be developed in the energy industry.
We will be looking at whether the Government are on track to eliminate fuel poverty by 2016; the findings of the Hills review and its impact on fuel poverty policy; the extent to which fuel poverty policies are reaching the right people and how this might change under the energy company obligation; measures for vulnerable consumers living in solid-wall and hard-to-treat properties; and the extent to which fuel-poor households engage in switching and energy efficiency schemes.
Dr Thérèse Coffey (Suffolk Coastal) (Con)
I thank my hon. Friend and his Committee for their excellent report. He will know that the all-party group on off-gas grid is in the middle of its inquiry, so I welcome this extra investigation. He has long been an advocate for households in his constituency and elsewhere. Will he ensure that the new inquiry includes a reference to off-gas grid households?