9. What steps he is taking to promote competition in European energy markets. (900523)

The Government strongly support a competitive and better connected energy market across Europe. Increased competition can put downward pressure on energy prices in the long term and help us maintain secure supplies. We are involved in a number of areas to drive competition, including the development of EU-wide market rules, regional infrastructure initiatives and cross-border projects, including more interconnectors.

I thank my right hon. Friend for that expansive answer. Does the Minister agree that, in contrast to Labour’s energy price con, the Government’s focus on more competition through the single market by enhancing the role of energy within that market is right?

I absolutely agree with my hon. Friend, and I could not have put it better. I shall be pursuing these issues later this afternoon in Brussels in the Commission.

Why have the Government failed to include interconnection with Europe as part of the capacity payment arrangements that they recently announced as part of the DECC implementation programme?

We have not ruled that out for the second stage. A number of proposals have been put to us for new interconnectors, and we are looking at each of them.

As a result of weak competition and ineffective regulation, electricity prices in Britain—according to the Department’s own figures—are the sixth highest in the EU15, the third highest in the G7 and almost 20% above the EU15 and G7 average. The Minister will know that energy bills are the second biggest cost that businesses face, and that ever higher prices cost jobs and deter investment. Why will he not support Labour’s policy to stop unfair price rises by freezing energy bills until January 2017, saving the average business some £1,800, and reform the energy market to reintroduce competition and rebuild trust?

I welcome the hon. Lady to her new responsibilities. I think that the prices she quoted were pre-tax rather than post-tax, but the answer is simple—to bear down on prices, we need more competition. The Labour party left us with the big six. It started with 14 retailers; we ended up with the big six. The answer is more competition, easier switching and ensuring that the most vulnerable people are placed on the lowest possible tariff.