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Written question asked by Caroline Lucas (Green Party) on Tuesday, 13 June 2023, in the House of Commons. It was due for an answer on Thursday, 15 June 2023. It was answered by Amanda Solloway (Conservative) on Wednesday, 21 June 2023 on behalf of the Department for Energy Security and Net Zero.

Energy: Companies

Question

To ask the Secretary of State for Energy Security and Net Zero, if he will make it his policy to regulate energy companies to (a) require them to automatically refund surplus credit to consumers who have used less than estimated at the end of the contract year, (b) limit the amount of consumer credit they hold and (c) protect the credits held by consumers in the event a supplier fails; and if he will make a statement.

Answer

Ofgem rules state that direct debits must be as accurate as possible and suppliers have a general obligation to not be “overly reliant” on customer credit. Ofgem’s Market Compliance Review (MCR) assessed how suppliers set and review customer direct debit levels. The MCR did not find evidence that direct debits were being widely inflated.

Customers can request a refund on their credit balance at any time and the credit must be refunded promptly.

All domestic customers had their credit balances protected following the supplier failures of Winter 2021/22 and credit balances will remain protected in the event of further insolvencies.

Secondary information

Type
Written question
Reference
189205
Session
2022-23
Subjects
Consumers Companies Credit Energy Regulation Repayments
Link
View this Written question on www.parliament.uk