Energy Company Charges

Debate between Robert Halfon and Baroness Hoey

Tuesday 4th February 2014 Commons Chamber

[Robert Halfon]

My hon. Friend makes an important point. I know that Which? has done an enormous amount of work, as have other organisations and the Keep Me Posted campaign. I am sure the Minister has heard my hon. Friend’s remarks.

How do some of the energy companies justify these fees? First, they claim, amazingly, that the fees they charge are proportionate. Under Ofgem’s licensing conditions to energy companies, they are required to ensure that what they charge is reflective of cost. As I have said, I have no problem with a small administrative charge to reflect the extra cost companies face in processing a cheque, but many companies offer a paperless discount of approximately £6 per annum, implying that the cost of letters is £6. Keep Me Posted, after discussions with mailshot companies, has revealed that the cost of printing letters, staff cost, postage and printing is 19p per item. I would therefore question how some companies have concluded that sending out letters can cost up to £15, and whether that is truly proportionate. It is also worth noting that some companies, such as Good Energy and Green Energy UK, do not charge their customers anything different based on their preferred type of payment, believing that customers should not be penalised for how they choose to pay.

Secondly, the companies argue that they should charge more owing to the cost of providing credit to customers. Of course, I understand that when one pays for something retrospectively there is an extra cost, but, as I have said, it is also worth pointing out that some companies that charge retrospectively do not charge anywhere near as much as the big utility companies. BT is not my favourite company. Nevertheless, it bills customers retrospectively for the calls they make, yet charges just £2 a month to customers who do not pay by direct debit. There is no extra charge for any customers who are on a low income and therefore qualify for the BT basic service. I praise BT for making a commercial decision not to rip off their customers and to charge just £2 a month. I believe that companies should be able to meet some of these extra costs themselves. Because of the nature of direct debit payments, customers often pay too much.

[Kate Hoey]

I congratulate the hon. Gentleman on his articulate outlining of the case. He mentions BT. His ten-minute rule Bill next week covers a much wider area, because it is clearly not just the energy companies that do this. Does he not agree with me that a basic principle should be that if someone has a bill and they want to pay it in cash, they should not be charged a penny extra for doing so?

[Madam Deputy Speaker (Dawn Primarolo)]

Order. Before the hon. Gentleman replies to that intervention, may I remind him that the Backbench Business Committee recommends 10 to 15 minutes for opening speeches? He is not making an opening speech, but he is being allowed that time. That 10 to 15 minutes does not allow extra time for interventions. He has been very generous, but a lot of Members wish to speak. I would be grateful if he could now draw his remarks to a conclusion.

Charging for Access to Parliament

Debate between Robert Halfon and Baroness Hoey

Thursday 15th March 2012 Commons Chamber

[Robert Halfon]

The right hon. Gentleman is right. People in Northern Ireland have been victims of terrorism, and they will know that the bells of Big Ben rang through the blitz and have a central part in everything good about being British.

This is an undemocratic decision because it has been made by the House of Commons Commission. The decision opens a can of worms. Yes, there have been consultations, chats, discussions and e-mails with MPs, but surely we in this House should have a say over major decisions about the costing and planning of expenditure at Westminster. The Commission says that we have to cut 17% from Parliament’s budget. I recognise, as does everybody else, that we have to make cuts. The 17% figure might be the right one, but it might be the wrong one—perhaps it should be 20% or 15%—but we in this House and in this Chamber have had no say in it, and that is wrong. The Commission should come to the House and present a list of the savings it is making, and then MPs should have the right to say whether they agree or disagree and answer to our constituents as to whether we are giving the taxpayer value for money.

The plans to charge for Big Ben raise much wider issues about the remit of the House of Commons Commission and whether Members should be elected to it.

[Kate Hoey (Vauxhall) (Lab)]

I fully support the hon. Gentleman’s motion. He is talking about savings in the House, but very much of what the Commission does is totally undemocratic. We never get asked about it and suddenly find out things from other people who work in this House. Does he agree that over the past five or six years what happens in the House has become incredibly top-heavy, with managers who are managing everything and have no understanding of what is going on at the bottom here in the House of Commons?

[Robert Halfon]

I do agree. Sadly, that is true of the whole public sector, not just Parliament, but the hon. Lady makes a very powerful point.

My next argument is that the decision is unnecessary. The Commission states that Clock Tower tours cost roughly £93,000, which will go up to about £111,000 over the next year or so. I would question that. Now that we are going to bring in charges, I suspect that not as many people will be able to afford to come here. I know from an e-mail that I have received that up to 200 people have e-mailed to ask for Clock Tower tours as soon as possible to try to avoid the cut-off date.

As I said, Parliament needs time to debate where these savings could be made. We need to think first in generalities, but I will offer some specific savings for Members to consider. We could look at the cost of publications and press cuttings. As regards the dining rooms, on Mondays they are barely used at lunchtime, so one of them could be closed at those times, saving a fair bit of money. Then there are the properties owned by the House of Commons. I am particularly disturbed about the waste of food in this place, which is absolutely obscene. I therefore welcome the ten-minute rule Bill on the subject of food waste that was introduced by the hon. Member for Bristol East (Kerry McCarthy) yesterday. The other day, when I went to the Members Dining Room, I asked the staff, who are wonderful and hard-working, “How many people have been in here today?”, and they said “About three.” This was a Monday lunchtime, and there was a huge banquet of food, as there always is. I asked what happened to the food, and they said, “It has to be thrown away.” I replied, “Well, why can’t it be given to charity or why can’t less food be made?” The answer on the charity point was that they might be sued if the food was contaminated and somebody got food poisoning.

I tabled a written question to ask the House of Commons Commission how much food was thrown away in the last year. The answer was the shocking figure of £100,000-worth. That cannot continue. When we are looking for savings, we should look at that issue seriously. Again, MPs should have a chance to debate this matter.