Ed Davey
MP for Kingston and Surbiton · Liberal Democrat · United Kingdom
“I associate myself with the Prime Minister’s opening remarks, not least about the 25th anniversary of the horrific terror attacks of 9/11. I welcome the Government finally banning imports from illegal Israeli settlements, something Keir Starmer should have done a long time ago.”
“I thank the Prime Minister for that answer. Britain should be the safest country in the world to have a baby. We will keep raising this issue until it is the safest.”
“No mother should have to give birth in such circumstances. Does the Prime Minister agree that Musgrove Park cannot wait until 2033 for work to start on a new maternity unit? Will he offer a meeting to local MPs, so we can move it forward? And will he make fixing the maternity scandal across our country a top priority of his Government?”
“I hope at that summit the Prime Minister will negotiate a good deal for our country, our economy and our defence, and that means rejoining the single market. North Devon’s maternity unit has been closed for three weeks due to staff shortages, so women now have to travel for up to two hours to give birth.”
“The Prime Minister said yesterday that Brexit ushered in “a decade of low growth and stalled regeneration.” —[ Official Report , 1 September 2026; Vol. 790, c. 27.] He is right. Our economy is stuck in this mess thanks to the Conservatives—and the leader of Reform UK—and their terrible Brexit deal.”
“There are so many more problems in our political system: too much power in the hands of social media barons who interfere in our politics and crypto billionaires who use donations to buy influence; and too little power in the hands of our people.”
The complete record
Every one of 6,005 lines we hold for Ed Davey, in date order, each linked to its source. Free to read, in full, without an account. Page 47 of 121.
“The idea that energy-intensive industries are not getting some of the support is not true. Payments under the scheme of compensation for the indirect costs of the EU emissions trading system are being made. It is true that the proposals for compensation for the carbon price floor are still going through the state aid process. However, we have a scheme that will come out and people will get those payments.”
“No, we do not block reports. We work with colleagues across Government. We are working with our friends in DEFRA to produce a report on the area that my hon. Friend mentions.”
“I reassure the hon. Lady that I have made it clear that the review of green levies does not cover renewables obligation certificates, feed-in tariffs or contracts for difference. That should be a great reassurance to Siemens. I hope that she will take that message back to her constituency. I look forward to meeting her and her colleagues shortly to discuss the important investment in Hull by Siemens.”
“My hon. Friend will know that in the annual energy statement I challenged the industry to come forward with proposals on how the process could be speeded up without compromising quality of services or consumer rights, or putting up consumer bills. The industry has started to put forward proposals. I met industry representatives early in November and was encouraged by the discussion, and I hope to make some announcements in the new year.”
“For the sake of clarity, let me say that the Government have no plans to change the rate of VAT applied to domestic energy. Any such policy would certainly put up energy prices and risk a very negative impact on the fuel-poor.”
“The hon. Lady is right to raise that matter. The announcement is obviously very worrying for all the people involved, not just in her constituency, but in other parts of the country. We will work across the Government to see what we can do to help the people affected.”
“The hon. Lady knows that we are considering the Atkins report and that we must make choices on which renewable electricity supplies we can back. I hope she will be pleased that, through the renewable heat incentive, we are supporting geothermal heat, which will be a big boost for the industry. That might not be as welcome to her constituents in the case she raises, but we want to back geothermal heat.”
“We have not had specific discussions on the proposal announced today, so I am afraid I cannot give the hon. Gentleman any background detail. However, as I have told the hon. Member for Stoke-on-Trent North (Joan Walley), we will work across the Government, particularly with the Department for Business, Innovation and Skills, to do what we can to help the people affected by the announcement.”
“We are seeing major investment in all sorts of renewables, including onshore wind and the farm to which my hon. Friend has referred. I very much support his call and congratulate the companies involved.”
“I met the NGOs before they walked out. I explained the progress we were making in the talks, and after they walked out, we made further progress. No one expected the Warsaw climate change talks to be a breakthrough. They were an important building block— a foundation—for Lima next year and for Paris and the critical talks in 2015. I have laid a written statement on the Warsaw talks.”
“We understand people’s concerns not just about onshore wind but about other forms of energy production, such as shale and so on. We need to ensure that the planning system is responsive. The hon. Gentleman knows that what he has said could be applied to many other developments outside energy. It is often the case that the unpopular development of housing or a supermarket gets overturned by the Planning Inspectorate.”
“I do not recognise the hon. Gentleman’s figures. A recent Ernst and Young survey had the UK as the fourth most attractive place in the world to invest in renewable energy.”
“Can the right hon. Lady tell the House whether anyone has visited her or her right hon. Friend the Leader of the Opposition as an investor or a utility and said that because of the Government’s policies they are less likely to invest? Has anyone said that to her?”
“I am listening very closely to the right hon. Lady, because she is, I think, putting before the House a new proposal on ring-fencing. For the sake of clarity, is that about splitting up the big six companies into new companies—a total break-up—or an accounting separation and self-supply restriction? Which is it? We need to know.”
“The right hon. Lady is telling us about these policies that she has. In forming them, did she read Ofgem’s final proposals on wholesale power market liquidity, which were published in June?”
“I regret the fact that we have lost the consensus on energy and climate change policy that we had until very recently, because consensus is vital. We need tens of billions of pounds of investment in new energy generation and networks. If we are to persuade investors, not just in the UK but around the world, to invest in the UK, they need to see that there is consensus on these issues. I hope that we will get back to that. I thought that we had got back to it when there were just eight votes against the Third Reading of the Energy Bill. All the major parties, including the nationalist parties, voted in favour of the Bill. All the Labour Front Benchers voted in favour of the Bill. I welcomed that at the time. I just wish that the consensus had not broken down so quickly.”
“I have notified you, Mr Speaker, and the right hon. Member for Don Valley (Caroline Flint) that I will not be here for the final part of the debate. I apologise for that. The Minister of State, Department of Energy and Climate Change, my right hon. Friend the Member for Bexhill and Battle (Gregory Barker), will be summing up. I want to make it clear at the start of my speech that the Government worry about rising electricity and gas bills all the time. As part of our economic strategy, we are working to bring down prices, get people into jobs and get the economy going. I will touch on that general point shortly. I welcome this debate and hope that there will be many more debates like it, because we want to debate which party and which side of the House has the best policies to help people and to improve Britain’s energy market.”
“We rejected the right hon. Lady’s arguments at that time and we reject them again today, as I shall set out. However, I am serious when I say that it is critical that we show investors around the world that there is consensus on these issues. I will try to rebuild that consensus in this debate and time and again afterwards, because I believe that that is in the national interest.”
“My hon. Friend is right. What the Labour party has done has increased the cost of capital. Who loses as a result? The consumer. By recklessly proposing this irresponsible policy, the Labour party has shown that it is against the consumer.”
“We are listening to their lordships House. I have to tell my hon. Friend that the argument is a little more complicated than what he has set out. Consensus is critical, not just across the House, but within the coalition parties. I accept that there have been debates within the coalition, but we have come together and produced a coherent energy policy. I will aim to rebuild the consensus with the right hon. Member for Don Valley because, as I think she knows, that is in the national interest.”
“I certainly will because I believe we have the best policies. There are two routes to rebuilding that crucial consensus. The first, which I would love to take, is to invite the right hon. Lady and the leader of the Labour party to discuss the issues with me so that we can try to reach out to Labour Members, explain why we think their policies are extremely damaging, and try to get the energy policy back on to that important political consensus. I fear, however, that that will not be possible. The noises we have heard from the Leader of the Opposition and the right hon. Lady suggest that they do not see the error of their ways, despite many people explaining it to them.”
“I completely reject everything the hon. Lady said. First, £31 billion has been invested in clean energy since 2010, and according to Ernst and Young we are now the fourth best place to invest in renewable energy—that is up, despite what the right hon. Member for Don Valley often says. More than 85,000 assessments have been made under the green deal, and more than 81% of those who have had green deal assessments have either had work done, are getting it done, or are considering having it done. That is much more of a success. The hon. Member for Brighton, Pavilion (Caroline Lucas) does her case no good by talking down the green deal.”
“I will not give way as I want to make some progress. I have made it clear that I would like the Opposition to come and talk to us so that we can rebuild that national consensus, but I fear that that is not going to happen. Instead, we will have to expose Labour’s so-called policies for the fraud they are. I am going to do that in full today and, I hope, in future debates. I hope that when Labour Members hear the arguments against the policies of those on their Front Bench, they will reflect and realise how irresponsible and ineffective those policies are.”
“To give an example to the Labour party, in the past year alone, disposable incomes have grown.”
“I want to make some progress. I also want to talk about the context for this debate, which is the cost of living. When considering the cost of living, one tends to think about inflation and how the general price basket is affecting people, particularly the poorest in our land. We should be focused on getting inflation down robustly. When we came to government, inflation was 3.4% and rising. We had to bring it down, and latest figures show that this month inflation is lower at 2.7%, and forecast to stay low. That is an achievement. In the context of the cost of living we have seen employment and growth go up, and unemployment, the deficit and inflation go down. That economic record will help people up and down the country because we are seeing the benefits of that.”
“I will not give way. Disposal incomes are now higher than in any year from 1997 to 2010. That is because of our income tax cuts for people on low and middle incomes, because we have taken action on fuel duty and frozen council tax— [ Interruption. ]”
“We want to do better, but we will not follow the record of the Labour party, which was dismal on prices and bills.”
“I was making the case that we have taken action to help people with the cost of living. Look at what has happened to gas and electricity prices. Under Labour gas bills doubled. In the previous Parliament, the average annual rise in gas prices was 12% per annum; in this Parliament it has been 10% per annum—far too high, but less than under the Labour Government. We could say the same about electricity prices. In the previous Parliament the average annual rise in electricity prices was 8% per annum; it is now 7% per annum—too high, but a better record than under Labour. According to recent Office for National Statistics figures for household spending on electricity and gas bills there was a 9% per annum rise in the previous Parliament; that is down to 6% in this Parliament.”
“If she is going to say that she will introduce full-scale price regulation, let her get to her feet now. If she is not, she simply cannot say that prices will not go up after her price freeze.”
“I have not made that analysis, but I know that others have and are concerned that Labour’s policy will put up energy prices in many different ways. I promised to analyse Labour’s policy and contrast it with the Government’s, and I will do that now. Let us start with Labour’s price freeze. The right hon. Member for Don Valley tried to say that the Government have put myths about. She tried to debunk those myths, but failed completely. We have made it clear that we believe that Labour’s policy is a complete con because prices could go up after the price freeze. The right hon. Lady’s answer to that is the amazing piece of legislation she is going to introduce, which will stop that. It will not, however, because the proposed legislation she described has no price regulation in it.”
“That is absolutely spot on. When he responded to that point, my right hon. Friend the Prime Minister made it clear that the Leader of the Opposition had sold the pass on their policy. If wholesale prices go up during the price freeze, they will not just hit consumers—we are worried that consumers will be fleeced by Labour’s policy—but they will also hit the competition and the small suppliers who are producing deals that people are already benefiting from.”
“I believe that competition is the way to sort that out, and I thought the right hon. Lady was saying that in her speech. I thought the point of her speech was to say that the markets are not working, and that in order to tackle overcharging she wants the markets to work. Is she saying that that is not her position and that she will bring in profit caps and stop companies overcharging, or is it competition? Competition or regulation—let the right hon. Lady come to the Dispatch Box and tell us. She cannot.”
“I will make some progress and then I will let my hon. Friend in. Labour’s price freeze is a con. It damages competition and, as we have heard, it damages investment. That contrasts with what the Government are offering, which is direct help to the poorest in society, radical energy efficiency programmes, and a focus on competition that the Labour party never had. That direct help, the warm home discount—£135 off the bills of 2 million of the poorest people—was never offered by the Labour party. We are taking forward the winter fuel payment and we have tripled the cold weather payment. That is direct help to the poorest people, and we are proud of that.”
“I will make some progress and then I will give way. On energy efficiency, the energy company obligation—which the hon. Member for Brighton, Pavilion said is not working—has already helped 216,000 households this year alone, and we expect many more people to benefit from that by the end of the year. I have explained how well the green deal is going with 85,000 assessments already made. When the Government talk about switching, the Labour party pooh-pooh it, saying, “That’s not the way to do it. Switching isn’t so important.” However, let us look at the facts on switching. uSwitch shows that, between 1 November 2012 and 31 April 2013, people who switched any supplier for both gas and electricity saved an average of £294, which is far more than they would save from the energy freeze offered by Labour.”
“My hon. Friend is absolutely spot on. As the uSwitch figures show, there are big savings to be made. Interestingly, the right hon. Member for Don Valley says that switching is not enough and talks down switching and the opportunity of millions of people in our country to make big savings. She should be ashamed. We are pushing switching very, very hard. The evidence is that switching is growing fast, as described by my hon. Friend the Member for Selby and Ainsty (Nigel Adams). Let me give the House one further piece of evidence. First Utility has increased its customer numbers by 57% from the beginning of October. People are switching in larger numbers. They are moving away from Labour’s big six to the coalition’s competition.”
“We want to ensure that Age UK and the Citizens Advice Bureau go out into communities to offer advice to those people. That is how to ensure that the poorest in the land can get the best deals in our land.”
“I am coming to the rigged market, but the market was rigged by the Labour Government. It is Labour’s big six and Labour’s market. We are changing and reforming it while Labour does nothing. One thing that worries me about switching is that we need to ensure that it operates for the poorest in our country. The right hon. Lady and another hon. Member made the point that, sometimes, the fuel poor and many elderly people do not get the benefits of the market and are not helped by competition switching—the figures bear that out. We cannot just rely on switching; we need to ensure that it works for those people. That is why the Government have put so much money behind the Cheaper Energy Together scheme and collective switching, and why we are putting money behind the big energy saving network.”
“Yes, I am aware of that. That is why we have raised the amount. Under Labour, it was about £100 or £150. With Ofgem, we have raised it to £500 to enable people to switch. I am afraid the hon. Gentleman is behind the times.”
“My hon. Friend is absolutely right. We have seen a big growth in independent suppliers and competition, which did not happen under Labour. Labour Members now want to kill it. Having created the big six, they want to help them. We will not allow that to happen.”
“My hon. Friend makes an excellent point. Our policies will work. We know that because they are working. We are getting the supplies and switching.”
“They claim that Ofgem is appalling and is not doing any work on competition, but the document shows that it has done so. Interestingly, the reason for the work is given at the beginning of the document. Ofgem produced the document because it wants to make more competitive markets to help the consumer. The right hon. Lady has not read the document. That is not very good. It is clear from her policies that she has not done so.”
“I am going to make some progress. I have given way a lot and will not give way for a while yet. On Labour’s pool and ring-fencing proposals, the Government contrast the policies of the right hon. Lady with our policies for greater transparency in the financial accounts of the big six and for Ofgem’s wholesale market reform “Secure and Promote”. Interestingly, when I asked her whether she had read that document, she said that she had not— [ Interruption. ] To be fair, let me correct the record: she did not answer the question. If she has read it, she can come to the Dispatch Box and tell us. She is not coming to the Dispatch Box, so we know that she has not read the document. Let me help the right hon. Lady. It would have been beneficial for the Opposition to have read the documents.”
“No, I am not giving way. The right hon. Lady talked about the pool and the exchange on which the electricity will be traded, but she has not noticed that the day-ahead market in Great Britain has boomed under this Government. In 2011, just 5% of final Great Britain demand for power was traded on the day-ahead exchange. In the past six months, more than 50% was traded. We have seen a big increase, but she did not even bother to mention it.”
“No, I am not giving way. Ofgem has looked at whether or not it should mandate 100%. It will ensure that there are new reporting requirements so it can check what is happening. It will say that, if the number does not improve and stays as it is, it will intervene. It is not intervening now—the right hon. Lady will not know this because she has not read the document—because the independent generators have not asked for it to do so. The independent generators say that the day-ahead market is not the problem for competition and that the day-ahead market is not the market in which there is room to drive down prices. They say that the problem is the forward markets—the month-ahead, six months-ahead, year-ahead and the two years-ahead markets.”
“Interestingly, the policies the Opposition have proposed today will also do nothing about the real problem. The description that the right hon. Lady gave of her policies proves that point. If she had read the document, she would have seen on page 8 the analysis by Ofgem—working on all the contributions from the independent suppliers and all the people in the industry—is that the problem she has identified is no longer a problem. It has marked that problem “green”. The problems that we have identified, which we and Ofgem are fixing, are all marked “red”. She really needs to do her homework. There is no point the official Opposition coming to this House with ill-thought-through policies that will not work. Our policies will work for the consumer, push competition into the market and get prices down.”
“However, they say that they cannot guarantee those, so they must spend more, and that their capital costs increase because of those risks. Independent generators face another risk. The question is not only whether they can sell energy, but whether they can buy it. If they have a contractual power purchase agreement and their generation capacity is not working for a particular month and they are unable to supply, they fail their contract. To be able to enter more contracts and expand their businesses, they therefore need to know that they can buy energy in the wholesale markets if their generating capacity is not working. It is therefore essential that we have a liquid market for four months, six months and 24 months ahead. Guess what? The previous Government did nothing to enable that competition in generating markets.”
“No, I will not give way. I want to explain to the House why the document is so important, and why Ofgem’s policies, which the Government support—we have put reserve powers in the Energy Bill to push them through—are so important for competition and pushing prices down for consumers. Independent generators need to know who will buy their electricity. The right hon. Lady is right that the big six can sell it to themselves, but independent generators cannot do so—they must sell it to someone else. That is a big risk for the independent generators, and they need to be able to cover it. Primarily, they do so at the moment through purchase power agreements or through bilateral trades, which are used mainly when selling to businesses.”
“Let me put it on the record that it is important that our energy companies make profits. I think we need reasonable profits for people to invest. I also know why it is important that companies make profits: the right hon. Lady agreed with me when I asked her, last time we debated this. I asked her whether energy companies should make profits and she agreed.”
“Ofgem is still consulting with the industry, but expects to give a final response to its consultation this year. Then its proposals for a market maker, which will ensure transparency so there are none of the secret deals that the right hon. Lady keeps on about, will start happening in the first half of next year. We are producing the competition proposals and they are coming into force. People have not seen the benefits of them yet—I accept that—because we have been trying to turn round the rigged market that we inherited. We are now turning it round and people will begin to see the benefits over the years ahead.”
“Let me finish answering the hon. Member for Denton and Reddish (Andrew Gwynne). I am not satisfied with the energy markets that we inherited from the last Government. We want to make sure that competition is working. That is why we have already had the retail market review with Ofgem, which is now improving competition in the retail markets. It is why we have Ofgem’s latest proposals in “Secure and Promote”, which the Opposition have not read, to improve competition in the wholesale market. I am not satisfied with the markets at the moment, but our policies—with Ofgem’s help—are coming into place now. We have had to run to make sure we turn round the markets we inherited, but I can tell the hon. Gentleman how quickly our policies are now coming in. The retail market review comes into effect, in terms of people’s bills, next month.”