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Written question asked by Bishop of St Albans (Bishops (affiliation)) on Monday, 1 September 2014, in the House of Lords. It was due for an answer on Monday, 15 September 2014. It was answered by Baroness Verma (Conservative) on Monday, 15 September 2014 on behalf of the Department of Energy and Climate Change.


Energy: Meters

Question

To ask Her Majesty’s Government how they will work with energy companies to ensure that those using pre-payment meters pay the equivalent tariffs to those paying by direct debit, irrespective of whether smart meters are installed.

Answer

Energy supplier licence conditions, set by Ofgem, allow suppliers to apply different charges to different payment methods providing the differentials reflect the costs to the supplier of the form of payment. This allowance is made in recognition of the fact that some payment methods are more expensive to administer than others. In May 2014, Ofgem published the results of analysis on this issue which showed that across the market the price on different payment methods reflects the varying costs suppliers face in providing them. This is available at the following link:

https://www.ofgem.gov.uk/publications-and-updates/price-differences-between-payment-methods-–-open-letter.


Secondary information

Type
Written question
Reference
HL1758
Session
2014-15
Attachment
Ofgem open letter 20.05.14 - Price differences
Subjects
Energy Meters Prices Pre-payment
Link
View this Written question on www.parliament.uk