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The best way to deliver on energy bills for businesses and households is to have a robust and competitive energy market. In 2010, the big six controlled 99% of the domestic retail market, but this year consumers can choose from more than 30 independent suppliers, who, between them, control more than 15% of the dual fuel market. Competition is improving, but we cannot be complacent, which is why I look forward to the final report of the Competition and Markets Authority and why I will continue to encourage consumers to switch.

Answered by
Amber Rudd (Conservative)
Answering body
Department of Energy and Climate Change
Type
Oral answers to questions
Date
12 May 2016
Reference
609 c700
House
House of Commons

I agree with the Secretary of State on that and thank her for that answer. The best way for consumers to get a good deal on their energy bills is to consider switching. Will she confirm that the Government remain committed to driving down the time it takes for consumers to switch?

Asked by
Will Quince (Conservative)
Answering body
Department of Energy and Climate Change
Oral questions - 1st Supplementary
Status
Answered
Date
12 May 2016
Reference
609 c701
House
House of Commons

My hon. Friend makes a good point. Consumers are sometimes put off from switching not only by the complications that they perceive, but by the length of time it can take. We are working with Ofgem and are confident that it will reach reliable next-day switching by 2018.

Answered by
Amber Rudd (Conservative)
Answering body
Department of Energy and Climate Change
Type
Oral answers to questions
Date
12 May 2016
Reference
609 c701
House
House of Commons

My hon. Friend the shadow Secretary of State for Energy and Climate Change recently visited the award-winning eco-house in my constituency, where heating and lighting bills are kept below £100 a year. What action is the Minister going to take to promote carbon-neutral homes?

Asked by
Margaret Greenwood (Labour)
Answering body
Department of Energy and Climate Change
Oral questions - Supplementary
Status
Answered
Date
12 May 2016
Reference
609 c701
House
House of Commons

I thank the hon. Lady for her question. She is right to point out that some fantastic innovations are taking place, through private sector business investment to make sure that innovations are delivered in this sector that will help to drive down bills. On zero-carbon homes, I can reassure her that a European Union directive, due to come in by 2020, calls for near-zero carbon emissions, which I believe will help to reduce people’s bills.

Answered by
Amber Rudd (Conservative)
Answering body
Department of Energy and Climate Change
Type
Oral answers to questions
Date
12 May 2016
Reference
609 c701
House
House of Commons

Does my right hon. Friend agree that it is important to give more power to price comparison websites to help consumers find the best deal possible? That was one suggestion put forward by the CMA.

Asked by
Andrew Stephenson (Conservative)
Answering body
Department of Energy and Climate Change
Oral questions - Supplementary
Status
Answered
Date
12 May 2016
Reference
609 c701
House
House of Commons

I agree with my hon. Friend that we have to have as many choices as possible for people, and the CMA has made some proposals, but we also have to be careful to ensure that this is addressed fairly, that the cheapest tariff is available and that there is full disclosure. I tend to encourage people to go to the Ofgem website beanenergyshopper.com.

Answered by
Amber Rudd (Conservative)
Answering body
Department of Energy and Climate Change
Type
Oral answers to questions
Date
12 May 2016
Reference
609 c701
House
House of Commons

The Secretary of State is fond of telling us how keen she is to cut energy bills, but last Friday, when attention was diverted elsewhere, her Department revealed that families in this country will be asked to pay up to an extra £38 on their energy bills to fund her failure to get new power stations built. Can she confirm to this House that not only is she asking families to pay more to fund her policy of closing coal- fired power stations, but, at exactly the same time, she is going to ask them to pay more to keep them open?

Asked by
Lisa Nandy (Labour)
Answering body
Department of Energy and Climate Change
Oral questions - Supplementary
Status
Answered
Date
12 May 2016
Reference
609 c701
House
House of Commons

The hon. Lady is referring to the changes to the capacity market, and I am concerned that she has not grasped the facts of the situation, which are that wholesale prices have fallen, with the consequence being that coal prices, and indeed some gas prices, become uneconomic. Because the Government will take no risks with energy security and because we are absolutely clear that it must be the No. 1 priority, we have brought forward a new capacity market that will stop there being the sort of price hikes which are most unwelcome. My Department estimates that this will actually save consumers up to £46 on their bills.

Answered by
Amber Rudd (Conservative)
Answering body
Department of Energy and Climate Change
Type
Oral answers to questions
Date
12 May 2016
Reference
609 c701
House
House of Commons

The absurdity of the situation appears to be completely lost on the Secretary of State, but as she has been on this panic spending spree recently perhaps I could ask her another question. She recently announced generous subsidies to EDF, the big energy company that operates Britain’s nuclear fleet. She has agreed to hand over £153 million in 2018 and a further £139 million the following year to subsidise nuclear power stations that would have been open in any case. Is she aware of the recent news that the cost of Hinkley Point C is set to rise to £21 billion, which is £3 billion more than was forecast? What is her estimate of the cost to bill payers and taxpayers in the UK of this new revised figure?

Asked by
Lisa Nandy (Labour)
Answering body
Department of Energy and Climate Change
Oral questions - Supplementary
Status
Answered
Date
12 May 2016
Reference
609 c702
House
House of Commons

I am concerned that the hon. Lady did not hear my answer to her earlier question. The fact is that energy security has to be the priority of government. In bringing forward changes to the capacity market, we have made sure that, with low wholesale prices, we have sufficient energy during the next two years. She just reveals her total lack of understanding of getting the right balance on secure electricity—nuclear and, yes, in the short term, coal—which supports our renewable investment, keeps bills low and ensures that customers always have a good supply of electricity.

Answered by
Amber Rudd (Conservative)
Answering body
Department of Energy and Climate Change
Type
Oral answers to questions
Date
12 May 2016
Reference
609 c702
House
House of Commons

The most effective way for consumers to ensure that they are on the best value tariff is by engaging with the energy market and switching supplier. I encourage all Members to urge their constituents to engage with the market and make use of the readily available Ofgem-approved price comparison websites. Meanwhile, we will continue to make it easier for consumers to switch, and we are working with Ofgem and the industry to move to reliable next-day switching by 2018.

Answered by
Amber Rudd (Conservative)
Answering body
Department of Energy and Climate Change
Type
Oral answers to questions
Date
12 May 2016
Reference
609 c702
House
House of Commons

High Peak is probably one of the coldest constituencies in England in the winter, so our household energy costs are probably disproportionately high compared with many other areas of the country. Has the Secretary of State made any assessment already of the trends of people changing suppliers and whether they are actually changing suppliers to keep those costs down?

Asked by
Andrew Bingham (Conservative)
Answering body
Department of Energy and Climate Change
Oral questions - 1st Supplementary
Status
Answered
Date
12 May 2016
Reference
609 c702
House
House of Commons

I can reassure my hon. Friend that switching was at a four-year high in 2015, with 6.1 million electricity and gas switches across Great Britain—roughly a 15% increase on 2014. I am aware that some people are unable or unwilling to switch, which is why we have the big energy saving network programme. This year, that programme gave £10,000 of funding to two champions in High Peak who reached more than 350 customers directly, and trained 111 front-line staff. Over the year, more than 1,900 vulnerable customers were supported. It is important to reach all consumers.

Answered by
Amber Rudd (Conservative)
Answering body
Department of Energy and Climate Change
Type
Oral answers to questions
Date
12 May 2016
Reference
609 c702
House
House of Commons

The right hon. Gentleman’s question starts from an incorrect premise. [Interruption.] I am trying to answer his question; bear with me. I think that he is referring to the zero-carbon proposal that was rejected by the other place last night, although it was agreed that a review would be ongoing. The problem with zero-carbon homes, as conceived in the Bill, was that they would add costs to the house. If we add costs to the house, we add costs, ultimately, to the house owner, the consumer and the bill payer. The problem with the allowable solutions portion was that it would act as a tax on home builders and, ultimately, it would be of no benefit to the homeowner.

Answered by
Amber Rudd (Conservative)
Answering body
Department of Energy and Climate Change
Type
Oral answers to questions
Date
12 May 2016
Reference
609 c712
House
House of Commons

Forgive me for making no comment about the appointment. I certainly share the hon. Lady’s view that prepayment meters need reform, that we need the safeguard tariff that the CMA has proposed and that it is unacceptable for the most vulnerable customers—usually those on the lowest incomes—to be stuck on higher tariffs. We will support the CMA to ensure that it delivers on that.

Answered by
Amber Rudd (Conservative)
Answering body
Department of Energy and Climate Change
Type
Oral answers to questions
Date
12 May 2016
Reference
609 c712
House
House of Commons

I hope that this will be a case of third time lucky. I have asked the Housing Minister this question twice, and I have also notified the Secretary of State’s office of the question, so I hope I am going to get a reply. What is the difference in the annual energy bill that a family in a zero-carbon home would have to pay as opposed to a family in a home that has the insulation and energy efficiency standards that the Government propose?

Asked by
Tom Brake (Liberal Democrat)
Answering body
Department of Energy and Climate Change
Topical questions - 1st Supplementary
Status
Answered
Date
12 May 2016
Reference
609 c712
House
House of Commons

Citizens Advice estimates that 7,300 households in Wakefield are paying more than £400 a year more for their gas and electricity than they should be paying because they are stuck on prepayment meters. Last month, the Competition and Markets Authority recommended a price cap to protect my constituents from this indefensible overcharging. This week, we hear that the chief executive of the CMA

is to be the Department’s new permanent secretary. Does that mean we can look forward to him implementing his own recommendations in the very near future?

Asked by
Mary Creagh (Labour)
Answering body
Department of Energy and Climate Change
Topical questions - 1st Supplementary
Status
Answered
Date
12 May 2016
Reference
609 c712
House
House of Commons

What steps her Department is taking to reduce energy bills for businesses and households.

Asked by
Will Quince (Conservative)
Answering body
Department of Energy and Climate Change
Oral questions - Lead
Status
Answered
Date
12 May 2016
Reference
904992; 609 cc700-2
House
House of Commons

What steps the Government is taking to ensure that energy consumers are on the best value energy tariff.

Asked by
Andrew Bingham (Conservative)
Answering body
Department of Energy and Climate Change
Oral questions - Lead
Status
Answered
Date
12 May 2016
Reference
904993; 609 cc702-3
House
House of Commons