Energy Company Charges

Debate between Baroness Ritchie of Downpatrick and Jake Berry

Tuesday 4th February 2014 Commons Chamber

[Ms Ritchie]

I agree with the hon. Gentleman; nobody should be penalised, and those who are least well-off are being penalised more than anyone else. Energy bills are at very high levels at the moment.

I am glad that the Prime Minister called last week for a probe into these excessive costs, and that the Department of Energy and Climate Change is to investigate the situation. There is clearly a role for Ofgem there, and I will encourage the utilities regulator in Northern Ireland to intervene with Power NI. Any such investigation needs to determine the real cost of the different payment options and the level that should be charged to ensure that one band of customers is not cross-subsidising another.

[Jake Berry]

Will the hon. Lady give way?

[Ms Ritchie]

I apologise, but I want to make some progress; I have already taken some interventions, and to take more would be unfair to others.

As I was saying, we need to determine the level that should be charged to ensure that one band of customers is not cross-subsidising another, particularly when a group of customers with limited financial means is found to be supporting cheaper prices for those who have the luxury of choice. The Consumer Rights Bill to which my hon. Friend the Member for Ynys Môn referred has a role to play. It offers the perfect opportunity for implementing the measures proposed today, and I would like to ask the Minister if he will now bring it forward.

We have a separate energy market in Northern Ireland, but I am aware that a similar situation exists there in relation to non-direct-debit charges. I therefore hope for an assurance from the Minister that the review will consider Northern Ireland as well. Will he tell us what discussions have taken place with the relevant Minister in Northern Ireland on the matter of energy billing?

The House knows of the wider issues facing the energy market, and there is clearly a need for sweeping reform, but today’s motion offers the opportunity to commit to a measure that would resolve at least one inequity. That would bring a degree of relief to families and individuals who are hard pressed by the ever-increasing cost of living.