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Do the Government not already have powers, under section 26 of the Energy Act 2010, to introduce a price cap if one group of customers is treated less favourably than others by an energy supplier? Ofgem fears that if it used its powers, there would be a ruling against it...
Do the Government not already have powers, under section 26 of the Energy Act 2010, to introduce a price cap if one group of customers is treated less favourably than others by an energy supplier? Ofgem fears that if it used its powers, there would be a ruling against it...
Some 5 million people are already benefiting from the price cap for those on pre-payment meters or on the warm home discount, and Ofgem is in charge of that. Why cannot it be trusted to extend its skill to a wider group of customers?
Some 5 million people are already benefiting from the price cap for those on pre-payment meters or on the warm home discount, and Ofgem is in charge of that. Why cannot it be trusted to extend its skill to a wider group of customers?
Today is a political lesson in never giving up. Despite all the lobbying noise of vested interests, constant denials of market failure and numerous attempts to persuade energy bill payers to shop around, the Government could no longer ignore the fact that the majority of energy bill payers were—and are—being...
Today is a political lesson in never giving up. Despite all the lobbying noise of vested interests, constant denials of market failure and numerous attempts to persuade energy bill payers to shop around, the Government could no longer ignore the fact that the majority of energy bill payers were—and are—being...
Absolutely, and I am going to come on to renewables. Ministers should beware of any proposal to exempt green tariffs or low-carbon tariffs from the price cap, and let me be clear why. In 75% of days in 2017, wind power supplied more energy than coal power in the UK....
Absolutely, and I am going to come on to renewables. Ministers should beware of any proposal to exempt green tariffs or low-carbon tariffs from the price cap, and let me be clear why. In 75% of days in 2017, wind power supplied more energy than coal power in the UK....
I welcome the cross-party support that continues to blossom on this issue.
I urge Ministers to ensure that Ofgem is equipped with all the powers it needs to act as a consumer champion, and to deliver both a price cap and penalties for corporate misbehaviour. I have not been uncritical of...
I welcome the cross-party support that continues to blossom on this issue.
I urge Ministers to ensure that Ofgem is equipped with all the powers it needs to act as a consumer champion, and to deliver both a price cap and penalties for corporate misbehaviour. I have not been uncritical of...
Would the hon. Gentleman be surprised to learn that it was only in 1998 that people were first able to change their electricity supplier?
Would the hon. Gentleman be surprised to learn that it was only in 1998 that people were first able to change their electricity supplier?
I accept that we are talking about decades—I do not think that the market we ended up with was one that Margaret Thatcher thought that she was creating. The truth is that it was only after 2010 that we had any transparency and could access the data to tell us...
I accept that we are talking about decades—I do not think that the market we ended up with was one that Margaret Thatcher thought that she was creating. The truth is that it was only after 2010 that we had any transparency and could access the data to tell us...
The hon. Lady is making an important point. Does she agree that it worth looking at how we could regulate independent brokers who could switch customers—on the customers’ behalf and under their authorisation—to the best deals? That might help these customers, and it could apply not only to energy, but...
The hon. Lady is making an important point. Does she agree that it worth looking at how we could regulate independent brokers who could switch customers—on the customers’ behalf and under their authorisation—to the best deals? That might help these customers, and it could apply not only to energy, but...
Will the hon. Gentleman give way?
Will the hon. Gentleman give way?
The hon. Lady makes a good point about the use of technology, but does she also accept that some of the poorest families in our communities cannot afford to buy the white goods that are at the cutting-edge of this technology, and we need to address that problem as well?
The hon. Lady makes a good point about the use of technology, but does she also accept that some of the poorest families in our communities cannot afford to buy the white goods that are at the cutting-edge of this technology, and we need to address that problem as well?
It is quite clear from the speeches of the hon. Member for Eddisbury (Antoinette Sandbach) and others who have spoken that we all agree that being able to end estimated bills is a good goal to achieve. In fact, an EU directive in 2006 stated that getting rid of estimated...
It is quite clear from the speeches of the hon. Member for Eddisbury (Antoinette Sandbach) and others who have spoken that we all agree that being able to end estimated bills is a good goal to achieve. In fact, an EU directive in 2006 stated that getting rid of estimated...
On that last point about what happens when our constituents hit those sort of buffers—when they are faced with inaccurate information—they say to me that they just do not know who to approach to complain about it. That is a fundamental weakness in the system—where should people go?
On that last point about what happens when our constituents hit those sort of buffers—when they are faced with inaccurate information—they say to me that they just do not know who to approach to complain about it. That is a fundamental weakness in the system—where should people go?
Don Valley.
Don Valley.
Much of what I am hearing is music to my ears, and I welcome the fantastic cross-party support. The draft Bill, however, is a vindication of Labour’s warnings since the data became available in 2011 that customers were being ripped off by the big six energy companies.
The Secretary of State...
Much of what I am hearing is music to my ears, and I welcome the fantastic cross-party support. The draft Bill, however, is a vindication of Labour’s warnings since the data became available in 2011 that customers were being ripped off by the big six energy companies.
The Secretary of State...
To ask the Secretary of State for Business, Energy and Industrial Strategy, what representations he has had from Ofgem on the timescale for the (a) publication of measures to protect vulnerable consumers with an extension of the pre-payment meter safeguard tariff and (b) implementation of such measures; and if he...
To ask the Secretary of State for Business, Energy and Industrial Strategy, what representations he has had from Ofgem on the timescale for the (a) publication of measures to protect vulnerable consumers with an extension of the pre-payment meter safeguard tariff and (b) implementation of such measures; and if he...
The CEO of Ofgem wrote to my right hon. Friend the Secretary of State on 3 July setting out his intention to consider options to protect vulnerable consumers including extending the protection in place for pre-payment meter customers. In the letter Ofgem stated it will move forward urgently to implement any changes. As a first step Ofgem plans to hold a summit with consumers groups this month.
To ask the Secretary of State for Business, Energy and Industrial Strategy, what estimate his Department has made of the potential reduction in the domestic energy market consumer detriment to be achieved by implementing an extension of the pre-payment meter safeguard tariff to those eligible for Warm Home Discount who...
To ask the Secretary of State for Business, Energy and Industrial Strategy, what estimate his Department has made of the potential reduction in the domestic energy market consumer detriment to be achieved by implementing an extension of the pre-payment meter safeguard tariff to those eligible for Warm Home Discount who...
The Department has made no such assessment. The effect of any extension of the safeguard tariff would depend on the number of customers who are eligible and the level at which the cap is set. This is a matter for Ofgem, which is currently considering options, including extending the current safeguard tariff.
But the CMA found that 70% of customers were being overcharged, while those on prepayment meters represented only 16%. It found that there had been overcharging of £1.7 billion a year since 2012, rising to £2.5 billion in 2015. A cap is available for those on prepayment meters, but what about the rest of the 70% of customers who are being overcharged? What will happen for them, apart from urging them to switch?
But the CMA found that 70% of customers were being overcharged, while those on prepayment meters represented only 16%. It found that there had been overcharging of £1.7 billion a year since 2012, rising to £2.5 billion in 2015. A cap is available for those on prepayment meters, but what about the rest of the 70% of customers who are being overcharged? What will happen for them, apart from urging them to switch?
It was, of course, disappointing that the Labour party opposed referring the energy market from Ofgem to the CMA. It is the CMA that has come forward with the recommendations, which I think is a welcome development. The right hon. Lady asks what can be done for other customers. The answer is that more competition in the market will allow people to switch so that her constituents will be able to have access to cheaper bills. I hope she will welcome the reform in the market that has allowed more competition to develop, resulting in lower bills for her constituents and everybody else.
That is misleading the House.
That is misleading the House.
Thank you, Mr Speaker. I think the Secretary of State inadvertently—
Thank you, Mr Speaker. I think the Secretary of State inadvertently—
I withdraw.
I withdraw.