Energy Update

Alex Cunningham Excerpts

Monday 5th September 2022 Commons Chamber

[Greg Hands]

The hon. Lady is right to raise the matter of prepayment meters and prepayment customers. She is, of course, right to raise the issue of the most vulnerable, which is exactly where the Government’s overall package is targeted. The £37 billion goes hugely to disadvantaged people and households.

Ofgem has taken a number of actions on prepayment meters in recent times. It warned suppliers in June 2018 that prepayment meters should be installed only as a last resort for debt collection. It banned forcible installation for vulnerable customers in 2017. In December 2020, it introduced new licensing conditions, including an ability-to-pay principle and the obligation on suppliers to identify self-disconnection and self-rationing by prepayment meter customers proactively. A number of measures have been taken by Ofgem. Of course it will keep these things under review, and I am sure the Government will look at them as well. If there are more actions the hon. Lady thinks should be taken, I am happy to hear from her.

[Alex Cunningham (Stockton North) (Lab)]

Many industries on Teesside and beyond that are dependent on natural gas as a feedstock are being ruined. CF Fertilisers has already ceased ammonia production in Billingham, while a second major local company told me that a decision could be taken within weeks unless something comprehensive is done, and it will close. The company has written to the Prime Minister. I await a response to my urgent letter to the Business Secretary on Friday, telling him that hundreds of jobs are at risk at that one company. The Minister spoke of some support to help energy-intensive industries, but it is totally inadequate to meet the needs of industry on Teesside and beyond. Will he please outline what assistance will be available for non-qualifying energy-intensive industries? Will he go away again and find another way to help the balance of industries, or is he prepared to see thousands of people lose their jobs?

[Greg Hands]

The Government are never prepared to see thousands of people lose their jobs, which is why we have taken such strong action in the last few years to make sure that our employment situation remains as robust as it is. Beyond that, the hon. Gentleman is asking me to make commitments that will be made by the incoming Prime Minister. He mentions CF Fertilisers, which is a company that we are keenly aware of. We have interacted with the company over a long period of time and will continue to do so.