Energy Company Licence Revocation
Debate between Ed Davey and David T C Davies(9 years, 7 months ago)
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Mr Davey
Well, if the right hon. Lady does not want that—if she is still expecting a process of orders and final orders—the House should be clear: she is proposing absolutely nothing new of substance. This whole debate is a fabrication. But if she does want Ofgem to be able to close a company down earlier—if she does not want Ofgem to go through an improvement process with a firm that has behaved badly, as now—she really has to tell us how her proposal will work, and how it will be different in substance to the current system, and she has failed to do so.
I do not question the right hon. Lady’s motives or commitment in initiating this debate; I agree that there is a problem, and we both want the same thing. We want a consumer-focused market in which bills are kept as low as possible and the energy companies provide a high-quality service. The question before us is, what is the right way to achieve that? The Government favour a balanced approach of competition, technology and regulation, giving people the choice to move to new suppliers with better service and better deals. Under this Government, the new independent suppliers that we have encouraged regularly top the best-buy tables and the tables for best customer service. People are voting with their feet thanks to our increasing competition and punishing bad service. The new independents are growing rapidly, with more than 2 million customers, and the big six are losing market share every day.
We can improve services for customers with technology, bringing the digital revolution to the energy market so that information is more accurate and easier to understand. Smart meters could do for energy what the smartphone has done for mobile communications. Regulation is vital, and we are making sure that we have an active and engaged regulator with the right balance of powers to effect change. There is a basket of powers that we have strengthened, such as criminal sanctions where appropriate, powers to fine companies and compensate customers directly, and the ability to work with companies with poor customer service and help them to improve. As a very last resort, with the bar set high, we have the power to revoke a licence where there has been a serious breach of conduct. That is the picture under this Government.
David T. C. Davies (Monmouth) (Con)
Will the right hon. Gentleman give way?
David T. C. Davies
I appreciate that, and the right hon. Gentleman is making some very good points, but I have to pick him up on one thing. If smart meters are such a good idea, can he explain why the Government are having to sell them to the public using Bob Geldof and two cartoon characters? If smart meters are as good as smartphones, why are the public not willing to go out and buy them?
Mr Davey
Obviously, I am grateful to my hon. Friend for his helpful comments. Smart meters have been well tested, and there is a lot of enthusiasm for them. One million have been rolled out, and consumers have embraced them. I was asked to quote Sir Bob Geldof at the launch of Smart Energy GB, but I do not think I will. I promised to give way to other hon. Members.
Cost of Living
Debate between Ed Davey and David T C Davies
Mr Davey
People who run food banks are doing an extremely good job and deserve credit for their work. However, it is completely wrong to suggest that there is a statistical link between the Government’s benefit reforms and the provision of food banks. It is good that people are helping others. I hope the hon. Gentleman supports that.
I wish to make progress and to talk about energy and climate change policy. My Department has three major objectives. The Department wants to ensure that energy is as affordable as possible for consumers and business; that we keep the lights on with energy security; and that we decarbonise the power sector. With the Energy Bill, the green deal and many other policies, we have the most coherent energy and climate change policy of any Government in Europe—and indeed of any Government in this country for many, many years. Our approach also tries to maximise the jobs and growth potential from our energy and climate change policies. We also try to ensure that the impact on the bills of consumers and businesses is as low as possible, and we have policies to try to meet the climate change challenge.
David T. C. Davies (Monmouth) (Con)
The total increase in average global temperatures since we started industrialising is approximately 0.7° Celsius. How much of that is due to carbon emissions and how much is due to the natural warming that was going to take place anyway as the earth came out of a cool period?
Mr Davey
I am disappointed that my hon. Friend seeks to deny the science of climate change. He may have heard Sir John Beddington, the Government’s recently retired chief scientist and a very distinguished scientist, say that the science showing climate change was human-made was “unequivocal”. When it comes to science, I like to listen to the experts.
It is important that we gain jobs, especially green jobs, through our investment in low carbon. We also need to ensure that these are profitable enterprises in which people can invest. We need £110 billion of investment in our energy infrastructure over the rest of this decade. That will be in low carbon, in gas and in other energy security measures.
On prices, we have to drive a wedge between the rising global prices and the bills that people have to pay. We also have to rise to the climate change challenge. We need to recognise that the challenge is serious and that—contrary to what my hon. Friend suggests—the science tells us that we have to act.
Fuel Poverty and Energy Efficiency
Debate between Ed Davey and David T C Davies(11 years, 3 months ago)
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Mr Davey
Two things surprise me about the hon. Lady’s question. First, she seems to know the details of the ongoing negotiations between EDF and the Government. I pay tribute to her if she knows them, but I have to tell her that her figures are completely wrong. Secondly, I would have thought that, given the real threat of catastrophic climate change, low-carbon energy would have changed a number of people’s views on nuclear power, if we can make it cost effective without public subsidy, in line with the Government’s policy.
David T. C. Davies (Monmouth) (Con)
Does my right hon. Friend agree that it is deliciously ironic that the Green party should be attacking the coalition Government for pursuing a form of energy generation that requires some kind of subsidy when it is determined to festoon the country with wind farms that require enormous subsidies to generate anything at all?