Energy: Tariffs

Lord Teverson Excerpts

Tuesday 6th December 2011 Lords Chamber

[Lord Marland]

The Government are going to do a lot to help customers. Ofgem’s proposals to simplify bills and make them transparent are ground-breaking—particularly the proposals to have standing order charges on the bill and set by Ofgem. Make no mistake: the Government’s entire policy is based on what is to the benefit of the consumer. That is at the heart of every decision we make. In the consultation process, this Government will be talking through the proposals with Ofgem. It is not surprising that they will not be implemented until 2012 because they are under consultation. Until the consultation is over, and Ofgem has had reports from the electricity companies, we will not be able to see the final outcome.

[Lord Teverson]

My Lords, does the Minister agree that the Government’s plan to roll out smart meters over a five-year period from 2014, rather than have the current dumb ones, is the real way to give consumers control over their energy charges? Should smart meters not automatically be able to tell consumers the best tariff?

[Lord Marland]

I totally agree with my noble friend. We intend to start rolling out smart meters in 2014. Our department is spending nearly £40 million on the development of smart meters, which will be state of the art. By 2019, every home should have a smart meter that should provide this vital information for people to be able to compare the tariffs.