Energy: Tariffs

Lord Whitty Excerpts

Thursday 13th December 2012 Lords Chamber

Asked By

[Lord Whitty]

To ask Her Majesty’s Government what steps the Department of Energy and Climate Change and OFGEM have taken towards ensuring that energy companies offer their customers the lowest tariff, as announced by the Prime Minister on 17 October (HC Deb, col 316).

[The Parliamentary Under-Secretary of State, Department of Energy and Climate Change (Baroness Verma)]

My Lords, the Government published a discussion document on 20 November setting out proposals to deliver the Prime Minister’s commitment to ensure that consumers are on the cheapest tariffs. The Government’s proposals build on Ofgem’s latest retail market review proposals published on 26 October. We are consulting on proposals to legislate in the Energy Bill to ensure that energy companies place consumers on the cheapest tariffs that meet their preferences and have clear, personalised information to help them shop around more easily for the best deals across the market.

--- Later in debate ---

[Lord Whitty]

My Lords, I thank the Minister for that Answer but the Question asked what steps have been taken. She refers to consultation. I have read the Statement, I have read the consultation paper and I have even tried to read the Energy Bill before another place; but the consultation document deals with simplification, it deals with collective buying, it deals with issues such as the companies offering a single tariff—but there is nothing in there to force companies by regulation to offer the lowest rate, which is what the Prime Minister promised. By the way, the Energy Bill as it stands does not really say anything about consumers until Clause 117.

[Baroness Verma]

My Lords, I remind the noble Lord that at least this Government have taken steps to help consumers who for far too long have not had information which is simple and easy to understand on their bills. The Government are at least taking those proposals forward. Just 15% of households switched last year and that is a really unacceptable percentage. We want to ensure that through the Energy Bill and through our consultations, we are putting the consumer at the heart of what we are doing. I am sure that when the Energy Bill comes to this House the noble Lord will look at it very carefully.