17:39 John Robertson (Glasgow North West) (Lab)

The Secretary of State and the Minister of State, Department of Energy and Climate Change, the right hon. Member for Bexhill and Battle (Gregory Barker), know that the Secretary of State’s performance broke something the House used to have—hon. Members working together on energy. We know there are problems, many of which are outwith our control. The previous Government had the support of Her Majesty’s Opposition. He was not a member of that Government.

I must tell the Secretary of State—he knows—that the Energy and Climate Change Committee’s report said that there was a lack of transparency in the Government and Ofgem. I do not necessarily want to get rid of Ofgem. It has a job to do, but I want it to be able to do its job without being frightened. I see a bullying tactic from the Secretary of State, which leads me to believe that there is a good reason why Ofgem has not been doing its job properly and not doing what it should be doing. It is too frightened of repercussions from the Government. I hope I am wrong, but I see something today that I did not think I would see from a Secretary of State. To treat my right hon. Friend the Member for Don Valley (Caroline Flint) as he did was, to say the very least, not gentlemanly. At least he could pay credit to the fact that the Opposition have put ideas forward. He might not like the ideas, but the fact is that ideas were put forward. If he wants to stymie them and ensure that we have a shouting match between Government and Opposition, he has drawn the battle lines.

The hon. Gentleman did an excellent job as a Minister, but he will remember that it was support from him and his colleagues that helped us to get to where we are today. The Secretary of State would not be a Minister if it had not been for what happened in those days because there would not have been an Energy and Climate Change Department or Committee. We did that together, and we have to go forward together. I hate this fighting and having a go at each other—“Your policy was wrong, our policy is right.” That is a portrayal of history that I do not recognise. What was done at the time was right for the time. We have moved on and we need to make things better.

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17:56 Albert Owen (Ynys Môn) (Lab)

It is a pleasure to follow the right hon. Member for Hitchin and Harpenden (Mr Lilley), my colleague on the Select Committee on Energy and Climate Change with whom I have many discussions. I do not agree with him on many issues, but we have great discussions. His speech today was not an attack on our motion—I did not identify anything in the motion that he was referring to—but a critique of the Government, as well as previous Governments. I stand by social tariffs. It is right to help the poorest in our society, who are suffering. That is important. The Secretary of State was right in his intervention on the right hon. Gentleman to point out that he was not talking about just renewables; rather he was talking about many of the social tariffs that successive Governments have supported and that I think we should support into the future.

The right hon. Gentleman was right to point out that energy prices remain a big issue for all our constituents; they have risen by some 20% in real terms since 2007, while average bills have risen by a staggering £300 since 2010, as the motion says. The motion rightly refers to the Energy and Climate Change Committee report on prices, profits and poverty. The inquiry discovered the complexities of the current, vertically integrated system and found it difficult to establish the profits and losses on the companies’ balance sheets. It is not that the companies do not have small or large margins—the right hon. Gentleman referred to that—but that we do not have clarity. We cannot really see what profits are made in which parts of their businesses. That is why the report called for a simpler methodology agreed between the regulator and the energy companies, so that we can identify clearly what profits and losses are made by the companies.

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18:13 Sammy Wilson (DUP)

Like the right hon. Member for Hitchin and Harpenden (Mr Lilley), I want to make some comments about the element of our energy costs that is not dealt with in the motion. That part is the cost of decarbonising—as it is now called—our energy supply. Despite what people have said, it has added costs to the consumer and is going to continue to do so. We cannot be schizophrenic about this by on the one hand condemning the increase in energy prices and on the other hand supporting policies that are contributing to that.

Let us look at the costs. Because renewable energy is so expensive, there is a compulsion to purchase electricity under the renewables obligation at much higher prices than fossil fuels. The figures have been quoted today. Offshore wind is now the favoured option. It is three and a half times more expensive than gas, and that will probably change further, especially as gas prices will come down with fracking.

There are also the increased costs of distribution to link up all the diverse sources. The National Grid recently published a consultation document, “Demand Side Balancing Reserve and Supplemental Balancing Reserve”, in which it talks about linking into generators across the country which could lead to electricity being bought at 30 times the cost of that generated by gas. There is the question of all the back-up and infrastructure that will be required for when wind drops off, too. All those things need to be addressed, which means that many Members will have to tackle their prejudices on some of the issues around climate change and carbon in the atmosphere.

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18:39 Luciana Berger (Liverpool, Wavertree) (Lab/Co-op)

We need a tough new watchdog that has the power to pass on price cuts to consumers when the wholesale cost of energy falls. That has been underlined by the report of the Energy and Climate Change Committee, “Energy Prices, Profits and Poverty”, which states clearly that “Ofgem is failing consumers”. It also states that it has proved

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18:49 The Minister of State, Department of Energy and Climate Change (Gregory Barker)

Is that not just old Labour all over? Labour, which saw heating bills more than double during its time in government. Labour, which in 13 years of government allowed real competition in the market to shrivel. Labour, which in 1997 inherited a diverse range of 14 competing companies and turned them into the big six. Labour, which drove British energy into the ground and failed to build a single nuclear power station. Its record on renewables was little better. After 13 years in office, Labour left Britain third from the bottom of the European league table for deployed renewable energy. It was Labour that allowed the cost of its green energy programmes to spiral out of control but failed to take real steps to decarbonise the sector; Labour that, after 13 years in power, left office with nearly 5 million vulnerable people living in fuel poverty; and Labour that, in the last Parliament, saw fuel poverty rise in every single year of the now Leader of the Opposition’s tenure as Energy Secretary.

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