Question

To ask Her Majesty’s Government what were the outcomes of the round-table event convened by Ofgem on 29 October on price differences between various payment methods for domestic consumers of electricity and gas, particularly in relation to addressing the higher fuel costs of pre-payment meters.

There was general agreement at the workshop that payment differentials was a complex issue and that any changes to the rules would create winners or losers with no clear benefit to vulnerable groups. For example, of households who were fuel poor in England in 2012, around 48% paid for their electricity and 40% paid for their gas through direct debit and around 27% paid for their electricity and 20% paid for their gas through prepayment meters. Changing rules in favour of pre-payment meter customers would make direct debit customers worse-off.

Ofgem intend to circulate a note from the event to participants within the next week. As part of their ongoing work programme on vulnerability, they are planning a series of workshops to focus on other important issues in the future.