Consumer Protection
Energy and Climate Change
10:30 am
William Bain (Glasgow North East, Labour)
What steps he is taking to increase protection for consumers in the energy market.
Edward Davey (Kingston and Surbiton, Liberal Democrat)
As the independent regulator of the gas and electricity markets, Ofgem’s primary duty is to protect consumers, and it has consulted on proposals to improve consumer protection and competition in its retail market review. The Government have consulted on new powers for Ofgem to compel energy companies to provide redress to consumers who have lost out because of a regulatory breach.
William Bain (Glasgow North East, Labour)
According to the Government’s own figures, fuel poverty in England is set to rise by 400,000 this year. In Scotland, more than one in four people are in fuel poverty, in Wales the figure is one in three and in Northern Ireland it is nearly one in two, yet 5 million customers are still being overcharged by the big six energy companies. When will the Government take the strong action that is needed with those companies to ensure that over-75s are always put on the cheapest tariffs—a change that would help 6,299 people in my constituency and 4 million pensioners across the country?
Edward Davey (Kingston and Surbiton, Liberal Democrat)
The Government have consulted on how we can change the measure of fuel poverty so that it is more exact and so that we can ensure that we tackle the worst fuel poverty. The previous Government could not even measure fuel poverty properly. As regards ensuring that the big companies give a fairer deal, Ofgem’s retail market review is considering everything from standards of contact to improving billing and tariff simplification. Those and other measures will help people.
John Baron (Basildon and Billericay, Conservative)
The Government have accepted the billing stakeholder group’s recommendation that information should be put on all energy bills, by this Christmas, detailing how much a customer could save if they were on that company’s cheapest standard direct debit tariff. Understandably, Ofgem cannot confirm whether it will implement that,
so what will the Government do to raise the matter with the Prime Minister and the big six in any forthcoming deliberations?
Edward Davey (Kingston and Surbiton, Liberal Democrat)
First, I thank the hon. Gentleman for all his work on this important issue. He has made a valuable contribution. We are raising the matter, because we take it very seriously. Ensuring that consumers have the right information so that they can switch to cheaper tariffs is very important.
Tom Greatrex (Rutherglen and Hamilton West, Labour)
It is not just households that need better protection in the energy market. Small businesses are also consumers under pressure from soaring bills. In the debate on the Queen’s Speech on
Edward Davey (Kingston and Surbiton, Liberal Democrat)
I am grateful to the hon. Gentleman for his question, but we will take no lectures about helping small businesses. We have done a huge amount across government to help small businesses, and, as he should know, Ofgem is looking into the issue.
Robert Halfon (Harlow, Conservative)
Sixty-five Members of Parliament of all parties have signed a Back-Bench motion calling for an Office of Fair Trading inquiry into the uncompetitive role of oil companies in keeping prices high at the pump. Will my right hon. Friend put pressure on the OFT to carry out that inquiry?
Edward Davey (Kingston and Surbiton, Liberal Democrat)
My hon. Friend will know that my right hon. Friend the Secretary of State for Transport and I have been looking into that issue, but as a former competition Minister in the Department for Business, Innovation and Skills I am clear that independent competition authorities are critical to effective competition policy. I would not want to be seen to be putting undue political pressure on a valuable independent institution.