Energy Prices

Tom Greatrex Excerpts

Wednesday 18th June 2014 Commons Chamber

[Tom Greatrex (Rutherglen and Hamilton West) (Lab/Co-op)]

We have had another interesting debate on the energy market—an issue that is high on the agenda of Members on both sides of the House and of people throughout the country. By now, that should not be a surprise to the Secretary of State and his ministerial colleagues.

The crisis of public confidence and deficit of trust that exists among consumers and bill-payers has now reached a level that cannot simply be dismissed, as the Secretary of State attempted to do in earlier debates on this and related issues. That has been well illustrated by two developments in the last eight days. First, wholesale energy costs are at a four-year low, and secondly—it was announced just today—complaints about energy suppliers are at record levels, with more than 1 million complaints in the first quarter of 2014. That is only those individuals who have made a complaint, and we all know from our surveys and casework that many of our constituents are very concerned about the energy companies and view the sector with a level of disdain and distrust that should concern all of us.

These debates seem to follow a familiar pattern. The Secretary of State is nothing if not predictable: another lengthy contribution that was staggeringly irrelevant to the motion and the subject of the debate. He repeatedly referred to his predecessor, but seemed to forget that his predecessor was in his party and in his Government. I understand why they perhaps do not wish to dwell on his predecessor’s lot, but the House should be reminded of the fact that his predecessor said that the energy market had all the characteristics of a cartel and refused, in 2011, to make a reference to the competition authorities when pressed to do so.

The Secretary of State referred to price increases. We should be aware that under the previous Labour Government prices increased by £19. In the three and a bit years for which we have records under this Government, prices went up by £69. That is the reality of the difference of scale and scope of energy price increases over that time.

We have had a number of contributions this afternoon. My hon. Friend the Member for Glasgow North West (John Robertson) is a member of the Energy and Climate Change Committee. He reminded the House of the lack of transparency in the market and what he has encountered as a member of the Select Committee when seeking to get to the bottom of the issues.

The hon. Member for Rossendale and Darwen (Jake Berry), a less frequent contributor to our energy debates than some who have spoken this afternoon, said that he thought it snowed almost as often in the part of east Lancashire that he represents as it does in Glasgow. My constituency is close to Glasgow. We did not have snow this year, but I have many constituents, as do many others, who are struggling to pay their bills. They see wholesale prices coming down, but their bills do not follow. He referred, as did the hon. Member for Angus (Mr Weir), to off-grid consumers. I am sure he will welcome our proposals to ensure the off-grid market is properly brought within the remit of the regulator.

The hon. Member for Angus has been persistent in pursuing the case for winter fuel payments to be paid at the start of the winter for off-grid customers, so they can purchase their fuel when it is cheaper. I endorse that wholeheartedly. He also made a point about hedging strategies and how they seem to have very little, if any, benefit to consumers. They seem to be an excuse, as my right hon. Friend the Member for Don Valley (Caroline Flint) set out at the start of the debate.

The hon. Member for Daventry (Chris Heaton-Harris) made an interesting contribution with a view on market economics that, frankly, I expect from him. I am not sure how many of his constituents would necessarily agree with him that these issues are best left to the market and that regulation is not important to their energy supplies.

My hon. Friend the Member for West Dunbartonshire (Gemma Doyle), in her six minutes, reminded the House of the impact on her constituents of high bills, on the back of lower wholesale costs. The hon. Member for Tamworth (Christopher Pincher) contributes frequently to these debates. I neglected to mention him last time, so I am mentioning him today.

My hon. Friend the Member for Llanelli (Nia Griffith) highlighted the Secretary of State’s boast of having reduced policy cost by moving some of it to general taxation. As she rightly said, however, 3.7 million consumers on fixed deals with all of the big six companies have not had that saving passed on to them. It is exactly that type of behaviour, attitude and agenda that contributes to the level of mistrust that exists with energy companies, and why the Government need to get to grips with it.

The hon. Member for Warrington South (David Mowat) exposed some of the cant on some of the issues around numbers. He is absolutely right to make the point that the rules of the game and of the market are much more significant than the number of operators. We need to ensure transparency in the market. The hon. Gentleman rightly said that if tacit collusion is currently happening, the Government should tackle it.

My hon. Friend the Member for Swansea West (Geraint Davies) got a lot into his six minutes. He reiterated the points on the lack of a transparent relationship between the retail and generation parts of the energy sector. My hon. Friend the Member for Newport West (Paul Flynn) reminded me why I attend mass less frequently than I perhaps used to. I am afraid his first few words distracted me from the rest of his speech, so I am unable to comment on it.

My hon. Friend the Member for Linlithgow and East Falkirk (Michael Connarty) rightly said that the debate is sometimes trivialised and added that this serious issue affects his constituents and constituents across the whole country. My hon. Friend the Member for Denton and Reddish (Andrew Gwynne) made the important point that the issue is not just about a freeze and a cap on prices, but reforming the market so it works in the interests of consumers and users.

We have had another debate that has highlighted the level of mistrust, a crisis of confidence and issues that need to be addressed. We know that there is huge dissatisfaction with the energy sector and the energy companies among consumers and constituents. That is not good for consumers or the energy sector and needs to be addressed. The Government have an opportunity to do so today by supporting the motion. The Secretary of State is probably within 11 months of the end of his time in office. If he wants to leave office with a reputation for more than complacency and denial, he will join Opposition Members in the Lobby to address the deficit of trust, tackle the crisis of consumer confidence and begin the process of giving customers a fair deal for their energy prices. That is entirely and exactly what the House should do this evening.