Prepayment Meters: Ofgem Decision

Alexander Stafford Excerpts

Monday 6th February 2023 Commons Chamber

[Graham Stuart]

The right hon. Gentleman asks how long the pause will last. That is up to Ofgem, as the regulator. It looked at this process before, as he rightly said, and it had assurances that have not proven to be accurate. Ofgem needs to ensure that the processes are properly observed, because it should be an absolute last resort that a prepayment meter is forcibly installed. He asks how compensation will be worked out. That is a matter for Ofgem. As is proper for the regulator, it stands between the Government, consumers and the suppliers in delivering that.

I have asked officials to look at providing a minimum amount of power, like France does. There are a lot of technical and other challenges to such a system. One of the benefits of having a prepayment meter is that it allows someone who is not engaging with their supplier and is running up debt to none the less have a supply continuing in their home. Having people cut off completely if they fail to manage that is not something we would want to see.

The right hon. Gentleman talked about the position from April. I am proud that the energy price guarantee will continue after April, providing support for households right the way into 2024, and we have committed to consult on a new system to look after vulnerable consumers after that date.

The right hon. Gentleman mentioned the windfall tax and loopholes. We are investing in our energy security. While we are importers of oil and gas, as we will be under net zero all the way to 2050, the absurd position set out by the Leader of the Opposition is that Labour will oppose any new oil and gas licences, meaning that we pay billions to other countries to import it. There is no magic bullet to stop us using fossil fuels immediately. This Government have accelerated the move to renewables as fast as possible and will continue to do so, but it is absurd to have a policy under which we pay billions to countries abroad to produce oil and gas that we could produce at home to ever higher carbon standards.

[Alexander Stafford (Rother Valley) (Con)]

An Englishman’s home is his castle, so it is disgusting that British Gas is forcing its way into people’s homes. What is especially galling is that, five years ago, Ofcom sent a missive to British Gas warning it not to do this, and British Gas is clearly ignoring Ofcom—[Hon. Members: “ Ofgem.”] Ofgem. What further powers can the Government give the regulator to ensure that British Gas and other such companies cannot do this again and to protect the sanctity of people’s homes?

[Graham Stuart]

My hon. Friend is absolutely right. We should all be grateful to The Times and its journalists for going undercover and revealing such behaviour—the processes were not followed. Ultimately, as a final resort, we need a forcible installation of prepayment meters in order to ensure that someone is not cut off entirely; that is necessary, but every effort must be made to support people, offer them payment plans, provide them with emergency credit and the like. We are ensuring that we have a system that does that. Ofgem has therefore since announced that it will conduct a further assessment of supplier prepayment meter practices, and we will back Ofgem to have all the powers it needs to hold suppliers to account.