Prepayment Meters: Ofgem Decision

Jonathan Edwards Excerpts

Monday 6th February 2023 Commons Chamber

[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.

[Jonathan Edwards (Carmarthen East and Dinefwr) (Ind)]

Analysis by Citizens Advice Cymru indicates that around a third of prepayment users in Wales have been disconnected at some stage during the past year. Furthermore, there has been a threefold increase in the number of consumers being switched to prepayment meters. Do those stats alone not indicate that there is a real issue with the way in which energy companies use prepayment meters?

[Graham Stuart]

I thank the hon. Gentleman for his question. The cost of energy has gone up, and despite extraordinary interventions by the Government, families are none the less finding it harder as a function of the Ukraine war and of global energy prices. That is why this Government have gone so fast in moving ourselves to cheaper renewable energy and away from the—what was it?—just 7% of energy that came from renewables when the right hon. Member for Doncaster North left office. Now that figure is well over 40%. We are going to move to a cleaner, greener and cheaper system that will be better for consumers in Wales.