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Energy Bill [Lords]

That is a fair point, but I would say in reply that what we need is greater clarity on bills about the availability of cheaper tariffs depending on payment method, which would include prepayment. We are not getting that at present. At best, we are getting generic messages saying, in effect, ““You may be able to save money if you ring this number,”” but the evidence suggests that such messages are not sufficiently strong to incentivise people to find the cheapest tariff. New clause 19 addresses that specific point. In the Retail Market Review, Ofgem stated its disappointment that the energy suppliers have not abided by what it considers to be the spirit of its post-2008 Energy Supply Probe standards of conduct, and that they have not always made details about switching as prominent as they might—although some companies have gone further than others. Ofgem is therefore frustrated about the lack of progress in this area. Having questioned both the previous and the current Governments about the need to do more in this area, I was pleased to see a coalition commitment that energy suppliers should provide information about cheaper tariffs on the bills and statements they send to their customers. In October last year, I sent a letter to the Secretary of State suggesting a solution to these problems, which involved energy suppliers printing clearly on customers' bills how much money they would save if they were on their supplier's cheapest standard tariff, assuming different payment methods. I felt that talking about pounds, shillings and pence—I was brought up in the pre-decimalisation era—sent a much stronger message than giving just general signposting information. Discussions followed and in June 2011 I was invited by the Minister of State, Department of Energy and Climate Change, my hon. Friend the Member for Bexhill and Battle (Gregory Barker), to chair a billing stakeholder group to make recommendations about the implementation of the coalition agreement commitment. The group comprised representatives from the Department, from ERA—the energy retail association, representing the energy suppliers—and from consumer groups such as Which?, Consumer Focus, Citizens Advice and Ofgem. Useful meetings were held over the summer and I thank all the members of the group for their contributions. During that process, two proposals emerged. The first, suggested by ERA, was for a generic signpost message, including a telephone number or website that customers could use to find cheaper tariff options, to be displayed prominently on customer bills. The second proposal reflected the view of Which? and my proposal in my letter of 18 October 2010 for a more tailored message on customers' bills. This message would quote pounds, shillings and pence saved, depending on the payment method and tariff, as determined by the customer's actual usage over the previous 12-month period, where appropriate.