Energy Prices — House of Commons, 2015-01-14
Topic: Energy
Albert Owen (Labour, Centre-left): I thank the hon. Gentleman for his intervention. I think he was complimenting the previous Labour Government on their handling of energy matters. If we get a new Labour Government, we will do exactly the same thing: create the stability that has not been there. [Interruption.] I am pleased that the right hon. Member for Rutland and Melton (Sir Alan Duncan) has returned to the Chamber. When gas and oil prices rise, the suppliers rush to pass on the costs to us, yet when we read in the papers that the oil price has collapsed and gas prices are falling, we have to wait a long time before it comes through on our bills The first thing we need to do is "give the regulator the teeth to order that those reductions are made"— not my word, but the words of the Prime Minister before the election. I cannot accuse him of being consistent in what he said before the election and what he has said since taking office, but he should be in the Lobby with Labour today, supporting our proposals I have long felt that our constituents’ concerns have not been put forward. However, I praise the Energy and Climate Change Committee for producing a number of reports on this subject, including one on prices, profits and poverty in the 2012-13 session. The big issue then—and rightly so—was the confusion and complexity of bills, to which many Members have referred. The outcome was good. We recommended that the Government give extra powers and responsibilities to the regulator to act in the interests of consumers, and the Government enacted just that. We are asking for the same today, and if the Government could do it then, they can do it now. At the time, consumer groups highlighted how, when the price of oil and gas fell, it did not follow through to bills, and Ofgem cited evidence that "bills respond more rapidly to rising supplier costs compared with falling costs." As has been said, the regulator’s remit is to protect consumers. It could intervene sensibly, conduct reviews in its own time—it does not have to wait—and ensure that the consumer gets a better deal. That is what it is there for I am pleased with Labour’s policy on energy prices and strengthening the regulator. Like other Members, I have concerns about those off the gas grid. As part of its market reset, Labour will be looking to regulate that area. My constituents who are not on the gas grid are paying considerably more in their unregulated areas—they do not have dual fuel, and their prices have been rising steadily—so I am pleased about the reset and the price freeze, or cap. Whatever hon. Members want to call it, the point is we are going to look at the energy market. It is fractured, and a fracture takes an awfully long time to heal, unless immediate action is taken We should be taking that immediate action. Government Members have the opportunity today to stop standing up for the big companies and the industry and instead stand up for their constituents. If they are knocking on doors, they will be hearing how consumers are being hurt by rising energy prices. I have seen the bills of my constituents, very recently, which show not a fall but an increase in the cost of energy since last year—and in that period we had a relatively hot summer and a relatively mild autumn and winter. What is coming will be even harder for people. Yes, there will be a slight drop in prices, and I do welcome E.ON taking the lead, but why has it done it just for gas? When gas prices were rising, the big six told us it had an immediate effect on electricity prices, yet they are not now reducing their electricity prices In the last year, the wholesale price of gas has dropped by 20%, but the consumer has seen just a 3.5% drop—from one energy company. We need to rebalance the energy market. We need to stand up, and be proud to stand up, for our constituents. The motion gives us the opportunity to follow the Prime Minister’s wise words. Instead of playing King Canute, instead of being ridiculous—he has been ridiculed by Members of his own party—the Prime Minister, as well as all Government Members, should stand up for our constituents, join us in the Lobby to support our constituents, who send us here to protect their interests, and get the regulator to do its job.