Energy Prices

Angela Smith Excerpts

Wednesday 19th October 2011 Commons Chamber

[Caroline Flint]

I understand that the wholesale price has gone down from its peak in 2008 by two thirds; in fact, wholesale prices have been going down in the last month. That poses the question: why do we hear from the energy companies when they say that prices are going up, but when the prices are going down we do not hear from them so loudly? Ofgem has said it is not good enough that when the energy companies claim that wholesale prices are going up, the price to consumers goes up like a rocket, but when they come down, the price comes down like feathers. The truth is that it is a complex market and it is difficult. We are not an island that can control everything, but we should control the way in which the energy companies are expected to satisfy us and the public about how they run their tariffs, and they should open their books to show transparency so we can see at what price they buy and at what price they sell, to ensure that we get a better deal.

[Angela Smith (Penistone and Stocksbridge) (Lab)]

Unemployment is at the highest level for 20 years, we have an austerity programme that makes the eyes water, inflation at over 5% and on top of that we face the biggest squeeze on living standards in a generation. Is it not imperative that the Government do something about rising energy prices, which do more than anything else to harm families’ budgets, making it hard for them to keep up a decent standard of living?

[Caroline Flint]

I agree with my hon. Friend. Given all the spin before the energy summit on Monday, it was disappointing that all that came out of it was that letters would be written to 8 million households telling them to check, switch, insulate and save. I am sorry, but that is not good enough. It is hard to check, switch, insulate and save when it is so incredibly difficult to navigate a way through the tariff system and people are never quite sure, even if they get what looks like a good deal, whether it is going to be a good deal down the road. That is why some of the tariffs that are fixed for 12 months have been so disappointing; many people have realised that they are not as good as they were claimed to be.