Asked by: Tonia Antoniazzi (Labour - Gower)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment his Department has made on the effect of a hard credit check for on the ability of consumers to switch energy suppliers.
Answered by Margot James
All energy suppliers are obligated to offer terms of supply to domestic customers, enabling customers to switch energy suppliers. Some suppliers carry out credit checks on new customers to confirm their identity and assess the risk of defaulting on their energy tariff. Suppliers should be clear to consumers when they intend to carry out a ‘hard’ credit check.
In the non-domestic retail market, suppliers will often carry out credit checks before offering a supply contract to a business consumer.