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, if his Department will take steps to help customers who have been subject to the forcible instillation of prepayment to have them removed at no cost.
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.
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 the potential merits of introducing a Business, Human Rights and Environment Bill to tackle (a) human rights abuses, (b) environmental destruction and (c) other harmful practices in supply chains.
Answered by Kevin Hollinrake - Shadow Minister without Portfolio
The Government expects all businesses in the UK to respect human rights and the environment throughout their operations and supply relationships according to the UN Guiding Principles on Business and Human Rights and the OECD Guidelines on Multinational Enterprises. The Modern Slavery Act already requires businesses with a turnover of £36 million or more, to set out the steps they have taken to prevent modern slavery in their operations and supply chains. Financial penalties will be introduced through primary legislation, when parliamentary time allows, to increase compliance.
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 the potential impact of the Strikes (Minimum Service Levels) Bill on industrial relations.
Answered by Kevin Hollinrake - Shadow Minister without Portfolio
The Department is currently finalising an impact assessment of the Strikes (Minimum Service Levels) Bill. This will be published shortly.
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 his Answer of 12 January 2023 to Question 114849, what assessment he has made of the potential impact of households with prepayment meters not redeeming their monthly energy support vouchers in December 2022 on the financial security of those households.
Answered by Graham Stuart
Customers on traditional prepayment meters should redeem their Energy Bill Support Scheme vouchers promptly each month to help with their household finances. The Government is working with suppliers to seek ways to increase redemption rates significantly. Suppliers are required to ensure all their traditional prepayment meter customers are aware of the vouchers and how they can redeem them.
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 meetings his Department has had with (a) Ofgem and (b) UK energy suppliers in which rules on fitting prepayment meters were discussed during the last 12 months.
Answered by Graham Stuart
The Department meets regularly with Ofgem and energy suppliers to discuss energy retail market issues.
I will be meeting with OFGEM, and others, this week to raise this issue directly.
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 his Answer of 10 January 2023 to Question 114764, what recent discussions he has had with Ofgem on improving compliance with its rules on fitting prepayment meters.
Answered by Graham Stuart
Ministers and officials regularly meet with Ofgem to discuss a range of energy retail issues, including prepayment meters. As part of their market-wide Compliance Reviews into Consumers in Payment Difficulty and Vulnerability, Ofgem engaged with suppliers and sought action to improve their processes on prepayment practices.
I will be meeting with OFGEM, and others, this week to raise this issue directly.
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 the compatibility of the Strikes (Minimum Service Levels) Bill with paragraph 882 of the International Labour Organisation code on Freedom of Association.
Answered by Kevin Hollinrake - Shadow Minister without Portfolio
The Government has considered the requirements set out in paragraph 822 of the International Labour Organisation (ILO) code on Freedom of Association. The ILO recognises minimum service levels can be a sensible solution to protect the public from serious consequences of strikes. The Bill is clear that before making regulations setting a minimum service level (MSL) for a particular area, the lead Department must consult widely. This will give relevant trade unions the opportunity to feed in their views. Once an MSL is in place, the legislation also requires employers to consult with a relevant trade union, and have regard to their views, before issuing a work notice.
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, if his Department will launch a formal inquiry into the practice of forced prepayment meter installations, including (a) evidence used by energy suppliers to assess vulnerability and (b) the role of magistrates.
Answered by Graham Stuart
The Government will continue to do all it can to ensure families and households stay warm this winter. The Government is taking urgent action to bring about greater transparency when it comes to concerning energy supplier practice. The Government has announced a five-point plan to tackle concerning behaviour by energy suppliers. This includes a call for suppliers voluntarily to stop the practice of forced prepayment meter switching and a request for the release of supplier data on the number of warrant applications they have made. Ofgem has also announced it will be conducting a further assessment of supplier prepayment meter practices.
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, if he will hold discussions with Ofgem on publishing an update on the compliance action being taken against energy suppliers found to be in breach of their licensing conditions.
Answered by Graham Stuart
The energy regulator Ofgem is responsible for ensuring energy suppliers comply with their regulatory obligations. Ofgem publishes the outcome of its compliance and enforcement here: https://www.ofgem.gov.uk/energy-policy-and-regulation/compliance-and-enforcement/retail-compliance-and-enforcement.
Ofgem has recently carried out a number of Market Compliance Reviews over the market, these are aimed at driving up standards across the market. Energy is an essential service and customers need confidence in their energy suppliers. The Government has asked Ofgem to take action to address weaknesses that have been identified. Ofgem plans to provide ongoing updates on progress against those actions. Further detail of the review can be found following this link: https://www.ofgem.gov.uk/publications/17-energy-suppliers-need-do-more-help-vulnerable-customers-winter.
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, if he will publish (a) the letter from his Department to Ofgem on forced prepayment meter installations and (b) Ofgem's response to that letter.
Answered by Graham Stuart
Letters will be published, as appropriate, on the GOV.UK website as this matter progresses.