Energy Markets Competition Assessment
Debate between Ed Davey and Emma Lewell-Buck
Mrs Emma Lewell-Buck (South Shields) (Lab)
In December, the Secretary of State said that Ofgem was not fit for purpose. He has also said that we cannot rely on guesswork to fix the energy markets. Why will he not admit that today’s decision to refer the energy market for a full market investigation is a clear admission that the market is broken and Ofgem is not fit for purpose? May I also offer him some polite advice? He does not need to rely on guesswork; he needs to listen to the Labour party.
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.
Oral Answers to Questions
Debate between Ed Davey and Emma Lewell-Buck(10 years, 3 months ago)
Commons ChamberRead Full debate Read Hansard Text
Mrs Emma Lewell-Buck (South Shields) (Lab)
8. What steps he is taking to help households with their energy bills.
The Secretary of State for Energy and Climate Change (Mr Edward Davey)
We are very concerned about rising energy bills, so we are helping consumers in three ways: with direct help with money off their bills; with stronger competition; and through energy efficiency programmes. Last month, we secured an agreement with the energy companies for an average £50 cut off this year’s bill, and I am pleased to tell the House that my Department’s own work for greater competition for consumers will be enhanced following the appointment of Clive Maxwell, the current chief executive of the Office of Fair Trading.
Mr Davey
No, I do not think it is time for a price freeze, because I do not think that will help the children the hon. Lady is talking about. We all know that Labour’s price freeze is a con and the energy companies will shove up the bills after the price freeze has ended. We want to give people permanent help, which is why the £50 average cut to people’s energy bills is welcome. In addition, we are ensuring that the warm home discount delivers £135 off bills for the most vulnerable people. That is a good record. We will be coming to the House later this year with our draft fuel poverty strategy, because we want to do more for the most vulnerable households in our society.
Mrs Lewell-Buck
A man in my constituency was recently arrested for stealing food. Upon escorting him home, the police found that not only did he have nothing to eat, but he had no heating or electricity at all in his home. He had turned to theft out of desperation. Why does the Minister not recognise that energy prices are a huge contributor to the cost-of-living crisis which is leading to such poverty and that this situation will only get worse until the Government adopt Labour’s energy price freeze?
Mr Davey
I do not know the case that the hon. Lady talks about, but the Government are as concerned as anybody about energy prices, energy bills and the impact on people around our country. That is why we have been hyperactive in this area; we have done far more than the previous Government. I mentioned the comparisons we can now make between energy bill rises under the previous Government and under this one. As I said, gas bills went up twice as much under the previous Government, but electricity bills increased by an average of 9% in the previous Parliament whereas in this one they have increased by 4%. We know that that still means bills are going up and we need to help people, but Labour’s record in this area was shocking.
Mrs Emma Lewell-Buck (South Shields) (Lab)
T4. Last year, the number of additional winter deaths in the north-east hit a 10-year high. Many vulnerable people living in my constituency would have benefited from having better insulated homes, but since the introduction of the Government’s energy company obligation the number of households having insulation installed has fallen by 90%. How does the Minister explain this shocking step backwards?
Mr Davey
We take the issue of winter deaths very seriously. If the hon. Lady looks at the numbers, she will see that, over a decade and a half or more, they have fluctuated. In fact, the largest amount of winter deaths we have known in the past decade and a half was under the previous Government. We need to have a sober, mature debate on how we tackle winter death, which is a very serious problem that needs to be dealt with through the health service, housing, and so on. The changes we made to ECO before Christmas are very good news for people in fuel poverty, because we have not only kept the amount of ECO that goes towards dealing with fuel poverty but extended it for two more years.