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Energy Bill

It seems to me that the way in which Ofgem was set up gives it quite strong powers. In the past, it has worked with the industry to ensure that competition was effectively delivered. We have been clear with Ofgem that we expect it to use its powers robustly in future to ensure not only that competition is effectively delivered, but that consumers are fully protected. That needs to be done within the context of recognising that we are expecting billions of pounds-worth of investment in new generation to come from the energy companies. We are asking for vast amounts of money from them—billions of pounds—for new power stations, renewables development, wind farms and nuclear. The change in the size of the agenda is massive. Ofgem is well aware that it has a role in ensuring security of supply and a competitive market, and that the consumer is dealt with responsibly when it comes to competition. However, it must also ensure that the energy companies are able to bring forward that very substantial generation, to ensure that we have the energy that consumers need for the future. Getting that balance right is always going to cause a lot of debate and disagreement. Ministers are supporting Ofgem, but we are also making it clear that the new Department expects it to use its powers robustly. At the same time, it must recognise that there is a wider agenda than merely keeping prices as low as possible. Recognising that agenda is desirable for all us, as the energy suppliers agreed when we met them yesterday. It is also important that we bring forward that investment and deal fairly with suppliers.