Energy Bill

Lord Roper Excerpts

Wednesday 6th November 2013 Lords Chamber

Moved by

[Lord Roper]

97: Clause 130, page 100, line 16, at end insert—
“(ba) require information to be provided in a form that is clear and easy to understand;”

[Lord Roper (LD)]

My Lords, on behalf of my noble friend Lady Maddock, who is away from the House with her Select Committee today, I shall move Amendment 97 and speak to the other amendments in this group. At Committee stage, she tabled an amendment to the tariff reform clauses in the Bill which we are now considering, suggesting that suppliers should provide details of their cheapest tariff on bills,

“in a clear and easily understood format”.

She developed that in her speech in Grand Committee. For those who were not in Grand Committee, I recommend that they read it, because she made her argument extremely effectively. The clauses in question provide the power to require suppliers to provide a message on bills telling customers if they offer a tariff which could save them money, and how much money they could save by moving the tariff.

In Committee, my noble friend Lady Maddock raised concerns that suppliers would make this confusing on their bills, and gave examples of how much difficulty people had in reading their existing bills. She suggested that her amendment, which indeed is being proposed again at this stage in a slightly amended form, would prevent them from doing this. My noble friend the Minister agreed with the sentiment of the amendment during Grand Committee, and said that she would consider it. I know how grateful my noble friend Lady Maddock is that the Minister gave a great deal of attention to it and has been able to add her name to the set of amendments which we are considering today. Although this amendment is not exactly in the same place as originally envisaged by my noble friend Lady Maddock, it sits within the same clause and has the same intent and legal force as the original proposals.

The remaining amendments in this group are minor and consequential to ensure consistency in the terms used throughout the clauses. I look forward to these amendments being made to the Bill. I beg to move.

--- Later in debate ---

[Baroness Verma]

My Lords, I thank all noble Lords for their support for this amendment and the noble Lord, Lord Roper, for speaking on behalf of the noble Baroness, Lady Maddock, to her amendment. These amendments would place in the Bill a requirement that information in consumer energy bills must be,

“provided in a form that is clear and easy to understand”.

My noble friend Lady Maddock raised the importance of this at Second Reading and in Committee, and the Government agree it is vital. Ensuring consumers are provided with clear and simple information regarding their existing tariff and others available to them is one of the key aims of the powers in question, and of Ofgem’s retail market review. I am therefore very grateful to my noble friend for bringing forward these amendments and I can confirm that the Government are happy to accept them.

[Lord Roper]

My Lords, in the circumstances, there is nothing I need to say.

Amendment 97 agreed.

Moved by

[Lord Roper]

98: Clause 130, page 100, line 18, leave out from “information” to “about” in line 23

--- Later in debate ---

[Baroness Verma]

My Lords, Amendments 101, 103 and 104 make the order-making power relating to domestic tariffs in Clauses 130 and 131 subject to the negative resolution procedure. This was a recommendation of the Delegated Powers and Regulatory Reform Committee. I again thank the committee for its consideration of the Bill. The Government agree that the recommendation would be an improvement, so I will move these amendments to give effect to it.

[Lord Roper]

My Lords, I welcome the response that the Government have made to the report of the Delegated Powers and Regulatory Reform Committee. This and other recommendations were raised in Grand Committee. In virtually every case the Government have been able to come back and accept those recommendations.

[Lord Grantchester (Lab)]

My Lords, the House is rightly wary of allowing wide discretionary powers without being able to suitably assess their application later. Your Lordships’ Delegated Powers and Regulatory Reform Committee expressed concern about the powers in the Bill. In Committee, on 9 July, along with the noble Lord, Lord Roper, we highlighted these concerns. At the time the Government agreed to bring forward amendments to ensure that the Bill and the secondary legislation would be complicit. While it has taken several iterations between the Minister’s department and the Select Committee to get it right, I am pleased to see that the Government finally listened to the recommendations that were made and tabled these amendments. Parliament must be able to scrutinise the Secretary of State’s complicated power to make orders about domestic supply contracts. After all, the power under Clause 130 would in effect enable the Secretary of State to categorise the terms of domestic supply contracts as “discretionary terms” or “principal terms”, which is a significant power. We welcome the government amendments because they will ensure that any such order is given appropriate parliamentary scrutiny under the negative resolution procedure. There will be a 40-day window during which Parliament can review the draft of the proposed modifications.