Prepayment Meters: Ofgem Decision
Debate between Graham Stuart and Dawn Butler
Graham Stuart
I thank the hon. Gentleman for his question, and he is quite right to speak up for people in rural areas who find themselves in exactly the position he describes. I am pleased to say that as of today, credits to electricity bills will be being paid to of people who are on the electricity grid but off the gas grid—they will be appearing from now on. We are determined to help those people, which is why we announced in the autumn statement a doubling of the alternative fuel payment from £100 to £200. That money will be going to help those people, and the portal will also open before the end of the month for those who are not on either the gas grid or the electricity grid, so that they too can apply and get that £200 support.
Dawn Butler (Brent Central) (Lab)
It should not take a journalist going undercover for the Minister to finally decide to wake up. I have been campaigning on prepayment meters since 2015, and the Government are still relying on energy companies to do the right thing. They are not going to do the right thing, so the Government need to force them. We have seen how quickly the Government can put legislation through.
Can I ask the Minister to confirm three things? First, in addition to providing compensation, will he remove prepayment meters from vulnerable households? Secondly, will he make prepayment meters cheaper per unit of energy? That is when the energy companies will start changing how they act. Thirdly, the cost has been significantly reduced due to smart meters, so the energy companies cannot use that as an excuse, but the scandal of smart meters is that energy companies can switch people remotely. Will the Government ensure that that can no longer happen and is outlawed?
Graham Stuart
I thank the hon. Lady for her question, and I am happy to confirm the compensation. If prepayment meters were made cheaper, we would have everybody seeking a prepayment meter and there would be nobody left to subsidise the vulnerable, and most of the poorest people do not have a prepayment meter. That question is entirely aligned with typical economic policy from the Labour party, but I do not think it contributes usefully to the debate.
However, the hon. Lady is right to highlight the importance of smart meters, and we want to see an acceleration of that programme. Smart meters provide a much better service and are cheaper to run, and I hope that as part of our plans for April 2024 onwards, when the Government support ends, we will have a system that encourages the installation of more smart meters and is much fairer to vulnerable users.
Prepayment Meters
Debate between Graham Stuart and Dawn Butler
Graham Stuart
We have called on suppliers to voluntarily stop the practice of switching to prepayment meters as the answer to households struggling to pay their bills, and they should also make a greater effort to help the vulnerable. We are going to look at this whole system, not least following Ofgem’s investigation that found failings by energy suppliers when dealing with the most vulnerable.
Dawn Butler (Brent Central) (Lab)
We must thank Dean Kirby from the i newspaper for his campaign—he called me because of my 2016 campaign on prepayment meters, and I also informed him of my experience as a magistrate. I am disappointed that it has taken so long to ensure that people on prepayment meters do not pay the extra tariff. An elderly constituent of mine who had had a stroke had no gas in their home. The unintended consequence of smart meters is that they can be switched remotely, and the Minister cannot rely on energy suppliers to do the right thing. Can he please take emergency action, and will he please realise that winter deaths have increased by 20% this winter?
Graham Stuart
One of the issues raised by the right hon. Member for Doncaster North (Edward Miliband) was the fact that redemption of the energy support vouchers that provide help for people on prepayment meters is at about 71%, as opposed to the higher level that we would like. That is something we need to address, because in this freezing weather it is more important than ever that those with prepayment meters look out for and redeem their vouchers, as a contribution to helping them get through this challenging time.