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Energy Regulations (Consumer Prices)

Indeed, the pattern of energy prices is regressive, both regionally and between social classes. What happens under the current pricing system is that we have a kind of negative social tariff, or, as somebody put it, reverse cross-subsidisation. In effect, the poor subsidise the rich through the pricing system. According to Energywatch, low-income households on prepaid meters pay 20 per cent. more, which amounts to some £140 a year on average, and something closer to £200 a year in the worst cases. Clearly, the energy companies have addressed the problem, at least in theory, with their own social tariffs. Of course, some companies do not do anything; I believe that npower is one. Some companies—for example, British Gas—do rather more, but then British Gas has the biggest price differential between prepaid meters and online ordering, so the tariff is only partial compensation. Can the Minister bring us up to date on the arguments on the social tariff? As he knows, a formidable coalition of charities—Help the Aged, Energywatch, the National Consumer Council, Unison, Save the Children, Barnardo's, the National Housing Federation and Age Concern—is arguing that a Government power to require the companies to introduce a minimum standard of social tariff needs to be written into the Energy Bill. It is not actually a very ambitious demand, but it appears that the Government are balking even at that, and that they do not want reserve powers to be written into the legislation. I hope that in the course of this debate the Minister will explain his position on the issue and say whether he is willing to listen to the powerful representations that have been made. A minimum standard is not too much to ask for in this context. To conclude, this issue is relevant not just to the past few weeks. I fear that the sudden surge in energy prices may well intensify. In fact, the Minister himself has said that we have moved away from the world of cheap energy. I do not know whether that is true, but certainly in the short term oil prices will be very high, and they normally feed through into gas prices after three to six months. There may be further pressures for utility price increases. Many industrial users are seriously worried about the forward markets, and what will happen this summer. Many of the issues that I raised will continue to be relevant. I hope that through debate and discussion we can make some progress, particularly on a Competition Commission reference and on a more progressive policy on fuel poverty and the social tariff.