Prepayment Meters: Ofgem Decision Debate

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Prepayment Meters: Ofgem Decision

Alison Thewliss Excerpts
Monday 6th February 2023

(1 year, 3 months ago)

Commons Chamber
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Graham Stuart Portrait Graham Stuart
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The hon. Lady says that prepayment meters are unfair, full stop. That is clearly not true: they have a great use. What they should do—

Alison Thewliss Portrait Alison Thewliss (Glasgow Central) (SNP)
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They are more expensive!

Graham Stuart Portrait Graham Stuart
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Where the charges are higher, it is because the system, which I think was last changed when the right hon. Member for Doncaster North (Edward Miliband) was Secretary of State, has meant that Ofgem is under an obligation to ensure that suppliers match charges to the actual cost of serving a customer. That was the principle established under the last Labour Government, and it subsists today, but I tend to agree with the hon. Member for Glasgow North East (Anne McLaughlin) that we need to look at this again. That is why we are looking at a reformed system for the treatment of vulnerable customers from April 2024.

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Graham Stuart Portrait Graham Stuart
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My hon. Friend is absolutely right. The Government will support the regulator to look into this matter thoroughly because any injustice done to any consumer must be identified and redressed.

Alison Thewliss Portrait Alison Thewliss
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My constituent Mr Valmassoi has to move out of his home at the end of the month because Utilita has taken so long to investigate a potential fault with his prepayment meter that saw his bills soar by over 400% in 14 days, despite no increase in usage. What can the Minister do? Mr Valmassoi says that a refund nine months later will not replace losing the flat that he has made his home for the past few years. What can he and others like him, who have been ignored and let down by providers such as Utilita, expect from the Minister?

Graham Stuart Portrait Graham Stuart
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It is precisely for people who have been ill-treated such as the hon. Lady’s constituent that we need to reform the system and ensure that suppliers meet their licence obligations. It is the job of the independent regulator to work with suppliers and ensure that we minimise that. We would encourage anyone to pursue the system of redress to make up for that as best they can. But no one can make up for the fact that someone lost their flat and home. They should not have done so if the supplier had acted as it was under a duty to.