Oral Answers to Questions Debate

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Oral Answers to Questions

Jake Berry Excerpts
Thursday 24th March 2016

(8 years, 1 month ago)

Commons Chamber
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Amber Rudd Portrait Amber Rudd
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My hon. Friend is absolutely right about that, and the entire purpose of subsidies is to give new industry and innovations in the renewables industry a good start. Subsidies are not intended to be permanent; they are about getting these things started and giving them a good start so that they can then carry on and deliver secure renewable energy, subsidy-free.

Jake Berry Portrait Jake Berry (Rossendale and Darwen) (Con)
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14. What assessment she has made of recent trends in the rate of switching in the retail energy market.

Amber Rudd Portrait The Secretary of State for Energy and Climate Change (Amber Rudd)
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My Department has taken action to make it simpler and quicker to switch supplier. I am happy to tell my hon. Friend that the number of households switching supplier is increasing—in 2015, it reached a four-year high. The latest figures released by Ofgem show that 6.1 million domestic energy supply accounts were switched in 2015, which is a 15% increase on the 2014 figure.

Jake Berry Portrait Jake Berry
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I thank my right hon. Friend for that reply and for her assistance in my work with the Behavioural Insights Team on trying to create the receipt of the winter fuel payment letter as a switching point for those who are retired. What further steps are she and her Department going to take to ensure that older citizens in this country are encouraged to switch, because they have traditionally been the hardest-to-reach group?

Amber Rudd Portrait Amber Rudd
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My hon. Friend is entirely right to focus on that older group, who sometimes are more resistant to switching. I thank him for the help he has given through his work with the Behavioural Insights Team and the Department on ways to encourage more elderly people to switch supplier through our communications to those eligible for winter fuel payments. The Competition and Markets Authority made proposals just last week that are designed to encourage all consumers to switch, including those over 65. The Government have committed to appropriate implementation of the recommendations, following publication of this report in full.

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Amber Rudd Portrait Amber Rudd
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Like the right hon. Lady, I would not want the House to be misled in any respect, so let us be clear. Labour supported the referral to the CMA in 2013, but then argued in 2014 that another investigation was not needed. It is that investigation that has delivered the results, which we will be legislating for, that will make the most significant difference for delivering lower bills for consumers.

Jake Berry Portrait Jake Berry (Rossendale and Darwen) (Con)
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T7. I know the Secretary of State is aware of the horrendous flooding in Irwell Vale in my constituency on Boxing day. With that in mind, will she say what steps her Department is taking to ensure security of the supply of energy to flood-hit areas in Lancashire?

Andrea Leadsom Portrait The Minister of State, Department of Energy and Climate Change (Andrea Leadsom)
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I took part in the Cobra meetings over Christmas, and it was devastating to see the distress and the awful problems that that flooding caused. As part of the national flood resilience review, we are working with industry to assess flood risk for energy infrastructure, and will be looking at options to improve resilience wherever we can. In addition, the Environment Agency is reviewing its advice on flood risk, and we are working with energy companies to ensure there is an appropriate response to any revised advice.