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Fuel Poverty

I am grateful to the hon. Gentleman. If time allows, I intend to discuss Ofgem's remit, which is of crucial importance. The fact is that the recent price increases impact strongly not just on the quality of life of most of our constituents—certainly some of the most vulnerable in my constituency—but on other things as well. They undermine social obligations to consumers, and they noticeably undermine the Government's income and inflation policies—I am pleased that the Chancellor has been active on that matter. The increases do not demonstrate a commitment to the most vulnerable individuals. When we raised this issue last year, the chief executive of one of the most prosperous energy companies wrote to Members of Parliament, including myself, and said, notwithstanding his company's huge profits—the company was later sold to the Spaniards—that we had a responsibility to ensure that all the benefits were taken up and that we should have a better programme for house building. We genuinely accept our responsibilities, but that does not mean that any Government should be seen to subsidise energy companies. The companies seem to take the view that fluctuations in energy prices should be dealt with purely by consumers, and that shareholders and profits have no role at all. I am not prepared to accept that concept, and believe that we are entitled to express our views because of the impact on our constituents. I want to raise the very important issue of disabled children and their families, which was mentioned by the hon. Member for Edinburgh, West (John Barrett). I am grateful to the Every Disabled Child Matters consortium for providing information on disabled children, which it obtained from a survey conducted by Contact a Family. It concluded that two thirds of families with disabled children struggle to pay their fuel bills each winter. One family of every 10 families with disabled children has had its gas and electricity supply cut off. Just imagine what that means. In addition to the problem of having disabled children, families have to sit in the dark and the cold—that is not acceptable in the new millennium. There is not a single Member of Parliament who would accept that and not say that the companies have a responsibility. They would say so, too, to the regulators. In the debate that I mentioned earlier, we spent some time considering the issues and the role of the Office of Gas and Electricity Markets. I have had a meeting with the regulator and also exchanged correspondence with him. Ofgem has considerable powers which, for whatever reason, it has not yet chosen to exercise. I urge it to do so now. What is being done to make the energy market more competitive, and to introduce longer contracts? Just look at what is happening in Europe. Ten years ago, a family in Glasgow or in my constituency enjoyed reasonably low energy prices. People in Berlin paid somewhat more. However, because of the long-term contracts that have been introduced elsewhere in Europe, there has not been much difference in the long-term prices in Berlin. Our constituents, on the other hand, have had to deal with the problem of fluctuating prices being passed on to them, and they are uncertain about how to budget for the forthcoming year. Last year, we had very high hopes of the European Commissioner for Competition, who said that she would not accept the absence of competition elsewhere in Europe. Markets appear to be closed to us. Competitors can invade our markets when prices happen to be low. The result is that there is not an even playing field in Europe. Europe should be more involved in such issues, and I say so with the respect that the Minister knows that I have for him. I am disappointed that Ofgem is not to the fore, using its powers and working with the institutions that exist, both to show that there is genuine competition and accountability and to produce a transparency that does not seem to exist in the energy industry. As regards the increase in wholesale prices, which we are told is at the heart of our problems, how much of that increase impacts on the prices that have been imposed? I have it on good authority that some people believe that about 40 per cent. of energy company costs apply to fuel prices. If that is the case, I cannot see why there is an average 17 per cent. increase. There are regional variations that are very worrying. In addition to the point made about the north of Scotland by my hon. Friend the Member for North Ayrshire and Arran (Ms Clark), I gather that the increase in London and the east Midlands is about 24 per cent. It is very difficult for the Government to argue—I understand where they are coming from—in favour of an anti-inflation policy, when public sector workers who have been asked to accept limited wage increases face rising prices, particularly for energy. I want to conclude by indicating the strength of feeling in constituencies such as mine, where people have worked hard in the mines, the steel industry, and engineering. As my right hon. Friend the Member for Islwyn suggested, when we look at the impact on people's health, particularly elderly people, the need for heat, warm water, and proper supplies of well-cooked food is something that we as hon. Members and the Government must support. It is fine if companies introduce social tariffs, but what is profoundly unacceptable is that, despite the Government's support, which I welcome, the energy companies think that the obligation to prevent fuel poverty rests with the Government alone. I do not accept that. I hope that when it comes to issues such as social tariffs, the companies will accept that they have a responsibility. The idea that in Britain, with the prosperity that we have otherwise enjoyed, there are people who have to choose between heating and eating is profoundly repugnant, and we believe that something should be done.