Oral Answers to Questions

Debate between Mark Pritchard and Chris Huhne

Thursday 16th December 2010 Commons Chamber

[Chris Huhne]

That is one element of the proposals we will be bringing forward later in the consultation document. Indeed, we will make a statement on it. The Treasury will consult on the carbon tax element today. It is one of four key instruments that we will suggest should play a part in reforming the electricity market, taken together with our price support measures and our very keen enthusiasm to encourage market entrants. As competition is the best guarantee to consumers, I believe we can ensure that we have the best possible deal for electricity and gas supply in future.

[Mark Pritchard (The Wrekin) (Con)]

May I congratulate my right hon. Friend on his success in Cancun? As energy and utility companies are not passing on falls in energy wholesale prices to consumers, is it not time we had a review of whether Ofgem has the powers to tackle those companies that seem to care very little about the poor and vulnerable, as the hon. Member for York Central (Hugh Bayley) rightly pointed out?

[Chris Huhne]

I am grateful to my hon. Friend for his kind remarks. There was an outstanding team effort at Cancun. The Minister of State, my hon. Friend the Member for Bexhill and Battle (Gregory Barker), who is responsible for climate change, and the rest of the team played a tremendous part in making sure the outcome was much more successful than we might have hoped even as recently as early in that week.

My hon. Friend the Member for The Wrekin (Mark Pritchard) is absolutely right to make the point he made. In my discussions with Ofgem, I have repeatedly raised the fact that we want it to be firm with energy suppliers and ensure our consumers are not being taken for a ride. Both the chairman, Lord Mogg, and the chief executive are very aware of that, and they are completely in line with our objective of making sure the energy suppliers are providing the best possible deal. The review is looking at precisely this issue. Ofgem does have substantial powers over suppliers and, of course, we can also trigger a competition review.

--- Later in debate ---

[Chris Huhne]

The action that Ofgem is taking is now, not in the future. It is reviewing the matter and making it very clear to the energy companies that margins that are not justified by the economics will incur its wrath, the use of its powers and potentially a competition inquiry. I merely refer to my earlier answer about all the action that the Government are undertaking to try to ensure that people are protected in these difficult times through cold weather payments, winter fuel payments and the voluntary discount scheme. We want to ensure that the people are who most adversely affected are protected.

[Mark Pritchard (The Wrekin) (Con)]

Palm oil plantations are now seen as a new cash crop in various parts of the world, but they cause mass deforestation and a huge loss of wildlife habitats. What can the Secretary of State do to ensure that we have a global deal on palm oil plantation that is sustainable for wildlife and the world’s natural resources?