Asked by: Dan Carden (Labour - Liverpool Walton)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, with reference to his recent letter to energy suppliers regarding prepayment meters, if he will publish a the data for (a) applications for court warrants to force entry into customers' homes and (b) remote switching of customers to prepay mode since July 2021 broken down by energy supplier.
Answered by Graham Stuart
As part of my Rt. Hon. Friend the Secretary of State’s 5-point plan on prepayment meters, he has written to energy suppliers asking that they share the number of warrants that they have applied for in recent months, and Ofgem has encouraged suppliers be fully transparent with their data around prepayment meter warrants.
In November 2022 Ofgem wrote to suppliers raising concern over remote switching of smart meters to prepayment mode without full regard to the licence conditions, and Ofgem is working closely with consumer groups to monitor consumer outcomes in this area.
Asked by: Dan Carden (Labour - Liverpool Walton)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, how many times energy suppliers have been found to be in breach of their licensing conditions in each of the last three years; and what penalties were applied to those suppliers.
Answered by Graham Stuart
As the independent regulator, Ofgem is responsible for ensuring licensed energy suppliers are complying with their licence conditions. Ofgem publishes details of its compliance and enforcement action on its website at: www.ofgem.gov.uk/energy-policy-and-regulation/compliance-and-enforcement.
Asked by: Dan Carden (Labour - Liverpool Walton)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment he has made of zthe implications for his policies of the report GreenGo: Unlocking an energy efficiency and clean heat revolution published by IPPR on 18 January 2023.
Answered by Graham Stuart
The IPPR report makes interesting suggestions which are being considered alongside the recently published Skidmore review, to which the Government will be responding in due course.
Asked by: Dan Carden (Labour - Liverpool Walton)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, with reference to his Answer to the Question from the hon. Member for Eltham of 17 January 2023, Official Report, column 161, whether he plans to amend the (a) Gas Act 1986 and (b) Electricity Act 1989 to help tackle the practice of customers being forced onto prepayment meters.
Answered by Graham Stuart
When installing a prepayment meter, suppliers have to consider whether this is safe and practicable, including whether a prepayment meter is appropriate for the specific customer. Ofgem rules restrict the force fitting a prepayment meter (PPM) to repay debt, except as a last resort. As my Rt. Hon. Friend the Secretary of State set out in the House on 17th January, officials are working on measures to support PPM consumers.
Asked by: Dan Carden (Labour - Liverpool Walton)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, with reference to the Autumn Statement 2022, whether his Department is holding a consultation with (a) local authorities, (b) civil society groups and (c) the wider public on energy reforms, including options such as a social tariff.
Answered by Graham Stuart
The Autumn Statement set out a commitment to work with consumer groups and industry to consider the best approach to consumer protection, including options such as social tariffs, as part of wider retail market reforms. Discussions with stakeholders are ongoing.
The Government will set out its position when the assessment of the options is complete, in time to deliver a new approach from April 2024. No decision on whether or when to conduct a formal consultation has been made, but the Code of Practice on Consultation sets out the approach the Government will take when it has decided to conduct a consultation.
Asked by: Dan Carden (Labour - Liverpool Walton)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, with reference to the Autumn Statement published on 17 November 2022, when the Government will set out its position on introducing a social tariff for energy.
Answered by Graham Stuart
The Autumn Statement set out a commitment to work with consumer groups and industry to consider the best approach to consumer protection, including options such as social tariffs, as part of wider retail market reforms. Discussions with stakeholders are ongoing.
The Government will set out its position when the assessment of the options is complete, in time to deliver a new approach from April 2024. No decision on whether or when to conduct a formal consultation has been made, but the Code of Practice on Consultation sets out the approach the Government will take when it has decided to conduct a consultation.
Asked by: Dan Carden (Labour - Liverpool Walton)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, whether the Government is taking steps to ensure that customers on energy prepayment meters do not pay higher rates compared with those on direct debits.
Answered by Graham Stuart
Supply licence conditions, enforced by the independent regulator Ofgem, state that differences in price between payment methods for energy must reflect the cost to the supplier of that payment method. The costs of managing prepayment meters are higher than those for standard meters due to the different metering requirements and payment systems.
Asked by: Dan Carden (Labour - Liverpool Walton)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, with reference to his recent letter to energy suppliers regarding prepayment meters, what legislative steps the Government will take to enforce the instruction for suppliers to end forced prepayment meter installations.
Answered by Graham Stuart
Prepayment meters (PPMs) allow customers to pay for energy on a pay-as-you-go basis and serve an important function by helping the avoidance of debt and court action. A ban on PPM switching as a last resort could lead to an increase in bailiff action. There are no plans to remove this option.
Ofgem has stringent rules on the force-fitting of PPMs. My Rt. Hon. Friend the Secretary of State has written to Ofgem asking them to conduct a review to make sure suppliers are complying with those rules. The Secretary of State has also asked energy suppliers to commit voluntarily to stopping this practice. I met with OFGEM and suppliers this week to discuss this matter.
Asked by: Dan Carden (Labour - Liverpool Walton)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what discussions he has had with energy suppliers on (a) identifying and (b) supporting disabled customers.
Answered by Graham Stuart
Ministers and officials meet regularly with suppliers to discuss a range of issues.
Independent regulator Ofgem requires energy suppliers to support disabled customers and the provision of additional services through a Priority Services Register. Ofgem monitors compliance with their rules protecting vulnerable consumers.
Asked by: Dan Carden (Labour - Liverpool Walton)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, pursuant to the Answer of 16 January 2023 to Question 124060 on Energy: Meters, if he will ask Ofgem to make an assessment of the level of compliance with current rules on forced prepayment meter installations; and if he will publish that assessment.
Answered by Graham Stuart
On 22 January 2023, my Rt. Hon. Friend the Secretary of State for Business, Energy and Industrial Strategy announced that the Government will take urgent action to bring about greater transparency when it comes to energy supplier practice, in relation to prepayment meters. The Government has announced a five-point plan to tackle concerning behaviour by energy suppliers which includes coordination with Ofgem to ensure it takes a more robust approach to the protection of vulnerable customers. Ofgem has since announced it will be conducting a further assessment of supplier prepayment meter practices.