Prepayment Meters: Ofgem Decision

Seema Malhotra Excerpts

Monday 6th February 2023 Commons Chamber

[Graham Stuart]

I thank my learned hon. Friend for his typically erudite question, and I agree with him. That is why, two weeks ago, we said that we would work with the Ministry of Justice to look into this and ensure that the processes were suitably robust. It is clear—not only, potentially, from court proceedings but from evidence given to the regulator—that some suppliers did not provide evidence on which we could rely.

[Seema Malhotra (Feltham and Heston) (Lab/Co-op)]

The Minister will know that prepayment customers, many of whom are the least well off in society, are charged a higher rate for their energy; that has been mentioned by Members on both sides of the House. Does he recognise the injustice of thousands more families being forced on to prepayment meters, on his watch, and on to higher rates at a time when so many are facing severe cost of living pressures? Does he not accept that it is time for him to step up and act further and faster, because this country needs that?

[Graham Stuart]

As I have said, that situation has obtained since the Labour Government introduced the current regime, and it is that cost-reflective principle which leads to prepayment meter customers being charged more. That was the position when the right hon. Member for Doncaster North was Secretary of State, and it still exists today. However, I agree with the hon. Lady, which is why, within the existing system, I have asked Ofgem to seek to ensure that not a penny extra goes beyond what is necessary to reflect cost. We are undertaking to look again at the whole system to ensure that it is fair to all, and most of all to the most vulnerable.