Energy Markets Competition Assessment

Tom Blenkinsop Excerpts

Thursday 27th March 2014 Commons Chamber

[Mr Davey]

I am grateful for the hon. Lady’s question, but I have been accused by the Opposition of saying—in the same debate, I believe—that Ofgem is fit for purpose and that Ofgem is not fit for purpose. I believe she was quoting her Front-Bench colleague, the right hon. Member for Don Valley (Caroline Flint). I will let the hon. Lady try again next time.

[Tom Blenkinsop (Middlesbrough South and East Cleveland) (Lab)]

In November 2011 the Government ruled out a full energy market investigation. Is the Secretary of State willing now to admit that the Government got it wrong and made a mistake, and can he explain to the House the difference between tacit co-ordination and collusion?

[Mr Davey]

On that last point, one is illegal and one is not, but I think we can all agree that they both need to be investigated by the independent competition authorities. It is interesting that Labour is complaining—at least, some Labour Members are complaining—that we did not make this referral before, given that Labour’s leader, when Secretary of State, refused to make the market investigation reference. Let us remember that in the previous Parliament electricity bills and gas bills increased faster on average each year than they have done under this Government. He had all the reason to make that reference to try to improve competition, but he flunked it when he had the chance.