Prepayment Meters

Anthony Mangnall Excerpts

Monday 23rd January 2023 Commons Chamber

[Graham Stuart]

I thank the hon. Lady for her question. Switching any customer from smart credit to smart prepayment can take place only after an energy supplier has gone through a prescribed process, in the same way as if they were going to fit a prepayment meter to replace a traditional credit meter. The energy regulator, Ofgem, has rules in place that restrict the forced fitting of a prepayment meter or the switching of smart meters to prepayment mode for those in arrears except as a last resort.

[Anthony Mangnall (Totnes) (Con)]

I do feel that the Government need to offer a clearer explanation as to why those on prepayment meters have higher energy charges—that is the least we can do. What help and support is being given to those who were on prepayment meters but, finding themselves in better financial situations after the Christmas period, are now trying to transfer back across to credit meters? In some instances there are penalties for doing this. It should not be right that any energy company is imposing a penalty for those who wish to transition away from prepayment meters.

[Graham Stuart]

I agree with my hon. Friend and it is important to make sure that people do not find themselves caught in a cul-de-sac. He asked about the Government laying out the rationale for higher costs. I believe I have said this on two occasions, so I hope I have at least set out the rationale, whether or not people agree with it. The one that we inherited and that subsists today is that this is cost-reflective. Ofgem, the regulator, supervises this and ensures that no charges are imposed that do not reflect the additional costs of providing energy through that particular methodology. Whether we should change that is a separate matter, but I hope I have at least been clear in explaining the rationale that we inherited from the right hon. Member for Doncaster North (Edward Miliband) and others previously.