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Grant Shapps

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Shapps, Grant (15)

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I think the House recognises that we have moved very fast on prepayment meters—[Interruption.] The same rules were in place when Labour was in power for 13 years. We are the ones—[Interruption.] I am reminded that the right hon. Gentleman probably set the rules in the first place, but I will have to fact check that for the record. We have taken a number of steps to relieve that pressure and I am pleased to see the Ofgem announcement today. We will keep this matter under review and go further if required.

Answered by
Grant Shapps (Conservative)
Answering body
Department for Energy Security and Net Zero
Type
Oral answers to questions
Date
18 April 2023
Reference
731 c127
House
House of Commons

It is an Ofgem announcement today, which I welcome because I asked Ofgem to go away and come to a voluntary agreement. It is actual action that makes a difference. What the right hon. Gentleman needs to explain is how, if we did not have some sort of measure in place to allow people to install meters to manage those finances, he would deal with all the additional cases that would end up in court. As ever, he gives simplistic answers in a complex world that I would not expect him to even start to address.

Answered by
Grant Shapps (Conservative)
Answering body
Department for Energy Security and Net Zero
Type
Oral answers to questions
Date
18 April 2023
Reference
731 c127
House
House of Commons

Just to correct the record, Ofgem is in charge. The measures it put out today, with industry agreement, will help to protect people. When a person’s payments are in deficit, they have to find a way out. The hon. Lady appears to favour a system in which, rather than installing a prepayment meter, people are immediately taken to court, which I do not think is a good solution. We will carry on working with Ofgem to make sure we put the best solutions in place.

Answered by
Grant Shapps (Conservative)
Answering body
Department for Energy Security and Net Zero
Type
Oral answers to questions
Date
18 April 2023
Reference
731 c128
House
House of Commons

How many households had forced installations of prepayment meters in 2022.

Asked by
Dan Carden (Labour)
Answering body
Department for Energy Security and Net Zero
Oral questions - Lead
Status
Answered
Date
28 February 2023
Reference
903785; 728 cc626-8
House
House of Commons

How many households in Newport West constituency had forced installations of prepayment meters in 2022.

Asked by
Ruth Jones (Labour)
Answering body
Department for Energy Security and Net Zero
Oral questions - Lead
Status
Answered
Date
28 February 2023
Reference
903798; 728 cc626-8
House
House of Commons

How many households had forced installations of prepayment meters in 2022.

Asked by
Paula Barker (Labour)
Answering body
Department for Energy Security and Net Zero
Oral questions - Lead
Status
Answered
Date
28 February 2023
Reference
903802; 728 cc626-8
House
House of Commons

As I was trying to explain earlier, it is a work in progress. We will make sure that those who suffered are recompensed. What happened was indeed a scandal. I could not have acted faster in this job to fix it and I described the three different parts of activity I undertook, which brought it under control.

Answered by
Grant Shapps (Conservative)
Answering body
Department for Energy Security and Net Zero
Type
Oral answers to questions
Date
28 February 2023
Reference
728 c639
House
House of Commons

There has been a long-term difference in the price of prepayment meters, which I specifically asked Ofgem to look at. I am meeting the Ofgem CEO to discuss its response shortly.

Answered by
Grant Shapps (Conservative)
Answering body
Department for Energy Security and Net Zero
Type
Oral answers to questions
Date
28 February 2023
Reference
728 c640
House
House of Commons

I wrote to suppliers in January calling on them to halt the inappropriate use of prepayment meters and to provide transparency on the use of warrants in people’s homes. Along with a number of other steps, that has led to the cessation of that practice.

Answered by
Grant Shapps (Conservative)
Answering body
Department for Energy Security and Net Zero
Type
Oral answers to questions
Date
28 February 2023
Reference
728 c626
House
House of Commons

I welcome the hon. Gentleman’s moves in this sphere. To be clear to the House, I wrote to the suppliers and received reassurances that they would end the practice. I asked Ofgem—I have to say that I thought the wool had been pulled over its eyes—to not just take energy companies’ word for it but go to the customers, which it is doing. I queried the fact that the courts were issuing mass warrants, which they have agreed to end. He talks about what happens next; he is right that Ofgem is looking at what further protections will be in place. Its work will conclude shortly with further announcements.

Answered by
Grant Shapps (Conservative)
Answering body
Department for Energy Security and Net Zero
Type
Oral answers to questions
Date
28 February 2023
Reference
728 c626
House
House of Commons

I take issue with the idea that the Government are somehow ducking our responsibility. As I mentioned, we are paying around half of household energy bills this winter. We took action—I will not repeat what it was—that brought the prepayment meter

scandal to a conclusion. That work, and what happens next, is being looked at very carefully. Ofgem will look at what happens if there is no fall-back solution when energy bills are not being paid. That is a complex issue, but more will be said about it soon.

Answered by
Grant Shapps (Conservative)
Answering body
Department for Energy Security and Net Zero
Type
Oral answers to questions
Date
28 February 2023
Reference
728 c626
House
House of Commons

I do not think I could have been any more vocal about this issue. Indeed, we brought that practice, which the hon. Lady rightly describes as abhorrent, to a close. We are also not soft on the energy providers, particularly given the 75% taxation, which is at a level designed to ensure that we have been able to support, in part, the 50% reduction in people’s household bills. As I said in answer to the previous two questions, we will return with more on this shortly.

Answered by
Grant Shapps (Conservative)
Answering body
Department for Energy Security and Net Zero
Type
Oral answers to questions
Date
28 February 2023
Reference
728 c627
House
House of Commons

I think it is always right that we keep what our regulators do under very close watch. My right hon. Friend the Minister of State has met the chief executive officer of Ofgem regularly, and I am meeting him shortly as well. We will continue to do that. I have called Ofgem out when I have been concerned and thought that it had had the wool pulled over its eyes by the energy companies, and I will continue to ensure that whatever happens will be appropriate for the future of this market. As my hon. Friend knows, we are undertaking a review of the way in which the energy markets operate at the moment.

Answered by
Grant Shapps (Conservative)
Answering body
Department for Energy Security and Net Zero
Type
Oral answers to questions
Date
28 February 2023
Reference
728 c627
House
House of Commons

There is no space for the sort of approach that we have seen from energy suppliers, and I am grateful to my hon. Friend for mentioning this. We have to have a situation where they respect their customers. Where there has not been the case, I am afraid that

suppliers need to ensure, as one or two Labour Members have mentioned, that they recompense their customers for the way they have behaved—outrageously, in many cases, including entering people’s homes without their permission.

Answered by
Grant Shapps (Conservative)
Answering body
Department for Energy Security and Net Zero
Type
Oral answers to questions
Date
28 February 2023
Reference
728 c627
House
House of Commons

As I mentioned previously, there is a role for prepayment meters. For example, my son lives in a shared flat, and they find a prepayment meter a very good way to pay the energy bill. I do not think that an outright ban is the right way to go, but the hon. Gentleman and others have rightly pointed out the level of concern across the House, which I absolutely share, about prepayment meters being forced on customers. We will ensure that we do not go back to those bad old days that I was pleased to play an important part in stopping.

Answered by
Grant Shapps (Conservative)
Answering body
Department for Energy Security and Net Zero
Type
Oral answers to questions
Date
28 February 2023
Reference
728 c628
House
House of Commons