Lord Geddes
Main Page: Lord Geddes (Conservative - Excepted Hereditary)
Lord Marland
The noble Baroness raises a very apposite question. As she says, E.ON has today raised its energy prices, which is absolutely regrettable in the current circumstances. We are very concerned about the margin that electricity companies are making in the current environment. As I said earlier, ensuring competitiveness is the role of Ofgem but let us make no mistake: we have to invest £110 billion in the next 10 years to upgrade our very redundant network. Therefore, I am afraid that electricity prices are going to go up because we have done nothing for a very long period.
Lord Geddes
Why are those who produce their own electricity—from photovoltaic panels, for instance—paid by the grid only a fraction of what they have to pay to the grid if they wish to draw electricity from it?
Lord Marland
The whole idea of incentivising people to produce electricity is for the Government to pump-prime alternative electricity uses. Photovoltaic energy is developing into a maturing market. We are reviewing whether it is mature enough and whether some of the benefits that that market has so far received should be reviewed.