Lords committee stage. Clauses 1 to 17 agreed to. New clause agreed to. Clause 18, as amended, agreed to. Clauses 19 to 26 agreed to. Schedule agreed to. Bill reported with amendments (HL Bill 157).

Lords committee stage. Clauses 1 to 17 agreed to. New clause agreed to. Clause 18, as amended, agreed to. Clauses 19 to 26 agreed to. Schedule agreed to. Bill reported with amendments (HL Bill 157).

Lords second reading. Agreed to on question. Bill committed to a Grand Committee.

Lords second reading. Agreed to on question. Bill committed to a Grand Committee.

Lords motion to consider. Agreed to on question.

Lords motion to consider. Agreed to on question.

Lords motion to consider. Agreed to on question.

Lords motion to consider. Agreed to on question.

To ask His Majesty's Government what discussions they had with Ofgem regarding their proposal to all energy companies to suspend the forced installation of prepayment meters.

To ask His Majesty's Government what discussions they had with Ofgem regarding their proposal to all energy companies to suspend the forced installation of prepayment meters.

To ask His Majesty’s Government what plans they have (1) to introduce legislation to prohibit the forcible installation of prepayment energy meters, and (2) to compensate those subjected to this practice.

To ask His Majesty’s Government what plans they have (1) to introduce legislation to prohibit the forcible installation of prepayment energy meters, and (2) to compensate those subjected to this practice.

It is right that Ofgem has asked suppliers to pause the installation of prepayment meters under warrant until they have assured Ofgem that they are compliant with all relevant regulations. Courts have been instructed not to list warrant applications, and the Secretary of State has asked energy bosses to

report back on how they will identify consumers who may have had a prepayment meter installed inappropriately and how they will put those matters right.

It is right that Ofgem has asked suppliers to pause the installation of prepayment meters under warrant until they have assured Ofgem that they are compliant with all relevant regulations. Courts have been instructed not to list warrant applications, and the Secretary of State has asked energy bosses to

report back on how they will identify consumers who may have had a prepayment meter installed inappropriately and how they will put those matters right.

Ofgem is in fact conducting an inquiry into the matter. We were all appalled to see the activities of British Gas in particular, which were exposed by the Times newspaper, to which we should be grateful. However, we should remember that prepayment meters are a useful tool for some customers to help prevent debt building up. A complete ban on prepayment meters would likely just see a move to debt enforcement by the courts and bailiffs, which is not a desirable outcome either. So none of these policy choices is easy, but the Secretary of State has written to all energy suppliers asking them to report back to him urgently on what steps they are taking to put these matters right.

Ofgem is in fact conducting an inquiry into the matter. We were all appalled to see the activities of British Gas in particular, which were exposed by the Times newspaper, to which we should be grateful. However, we should remember that prepayment meters are a useful tool for some customers to help prevent debt building up. A complete ban on prepayment meters would likely just see a move to debt enforcement by the courts and bailiffs, which is not a desirable outcome either. So none of these policy choices is easy, but the Secretary of State has written to all energy suppliers asking them to report back to him urgently on what steps they are taking to put these matters right.

My Lords, my noble friend knows that normally I agree with him, but in this case he is partly wrong. Yes, there is a slight extra charge for those on prepayment meters, but actually the highest rates are paid by those who have traditional standard credit. The cheapest way of paying is by direct debit. It is also not true that all customers on prepayment meters are necessarily in financially straitened circumstances. Some people—students, young people, people in tenanted accommodation and so on—prefer that method of payment. If we socialise the costs and equalise them among everyone, then many poorer people who prefer either standard credit or direct debit would pay more to take account of that.

My Lords, my noble friend knows that normally I agree with him, but in this case he is partly wrong. Yes, there is a slight extra charge for those on prepayment meters, but actually the highest rates are paid by those who have traditional standard credit. The cheapest way of paying is by direct debit. It is also not true that all customers on prepayment meters are necessarily in financially straitened circumstances. Some people—students, young people, people in tenanted accommodation and so on—prefer that method of payment. If we socialise the costs and equalise them among everyone, then many poorer people who prefer either standard credit or direct debit would pay more to take account of that.

I am told that those letters came in last night, and the Secretary of State and officials are reviewing those responses. We will have more to say on this shortly.

I am told that those letters came in last night, and the Secretary of State and officials are reviewing those responses. We will have more to say on this shortly.

The noble Lord makes an important point. The Lord Justice in charge of it has instructed the courts not to issue any further warrants in the meantime while these matters are investigated, but I am sure that is an important thing that we need to look at.

The noble Lord makes an important point. The Lord Justice in charge of it has instructed the courts not to issue any further warrants in the meantime while these matters are investigated, but I am sure that is an important thing that we need to look at.

I am afraid I did not quite understand the noble Baroness’s question, as it depends on what she means by the cost. Is it the cost to suppliers or customers, or the costs through the courts system? I will ask officials to look at it and perhaps write to her on that.

I am afraid I did not quite understand the noble Baroness’s question, as it depends on what she means by the cost. Is it the cost to suppliers or customers, or the costs through the courts system? I will ask officials to look at it and perhaps write to her on that.

Ultimately, it will be the taxpayer because that is a taxpayer subsidy, but we want to ensure that everybody gets the money that they are entitled to. The performance of companies varies widely in delivering these vouchers. Clearly, if people are on a smart meter then it is more advantageous because the support can be delivered easily and directly. We are working with suppliers to ensure that people get the support that they are entitled to but, by the very nature of premises with prepayment meters in them, it is sometimes difficult to get hold of the person paying the actual bill.

Ultimately, it will be the taxpayer because that is a taxpayer subsidy, but we want to ensure that everybody gets the money that they are entitled to. The performance of companies varies widely in delivering these vouchers. Clearly, if people are on a smart meter then it is more advantageous because the support can be delivered easily and directly. We are working with suppliers to ensure that people get the support that they are entitled to but, by the very nature of premises with prepayment meters in them, it is sometimes difficult to get hold of the person paying the actual bill.

Of course, we continue to look at this and I know that Ofgem is taking a close interest in it at the moment. All that is allowed under the licensing conditions is that suppliers can cover their actual costs that are reflective of servicing those different customers. As I said, the most expensive method for suppliers is those who pay by standard

credit, because they have to send out a bill then receive the payment in, et cetera, so those people pay even more than those on prepayment meters do.

Of course, we continue to look at this and I know that Ofgem is taking a close interest in it at the moment. All that is allowed under the licensing conditions is that suppliers can cover their actual costs that are reflective of servicing those different customers. As I said, the most expensive method for suppliers is those who pay by standard

credit, because they have to send out a bill then receive the payment in, et cetera, so those people pay even more than those on prepayment meters do.

The noble and learned Lord is right. The purpose of the Secretary of State writing to suppliers was to find out what arrangements would be made to put right matters that went wrong. Clearly, a number of consumers who are vulnerable have had the meters fitted, which of course is against Ofgem rules and against the licence conditions of those suppliers. That is why the courts are right to stop the issue of these warrants until these matters have been sorted, but we want Ofgem to report back as quickly as possible.

The noble and learned Lord is right. The purpose of the Secretary of State writing to suppliers was to find out what arrangements would be made to put right matters that went wrong. Clearly, a number of consumers who are vulnerable have had the meters fitted, which of course is against Ofgem rules and against the licence conditions of those suppliers. That is why the courts are right to stop the issue of these warrants until these matters have been sorted, but we want Ofgem to report back as quickly as possible.

Of course, you do not have to use cash with a prepayment meter. You can have a smart prepayment meter, which you can top up using mobile phones and so on, but overall my noble friend’s point is valid.

Of course, you do not have to use cash with a prepayment meter. You can have a smart prepayment meter, which you can top up using mobile phones and so on, but overall my noble friend’s point is valid.

I am not an expert on the system, but my understanding is that they are able to do exactly that now. The suppliers have to write to people to say that they are applying for a warrant and anybody has the right to go along and make representations in response to that. It is only when the applications are unchallenged that they are issued en masse.

I am not an expert on the system, but my understanding is that they are able to do exactly that now. The suppliers have to write to people to say that they are applying for a warrant and anybody has the right to go along and make representations in response to that. It is only when the applications are unchallenged that they are issued en masse.

It will be passed on when the price cap is reviewed by Ofgem. It is worth stating the amount of government support being given to all consumers. The reality is that over the winter the Government—the taxpayer—have been paying approximately one-third overall of people’s energy bills. There is a considerable amount of government support because of the massive increase in prices due to Putin’s war. Thankfully, the world has responded, and prices are coming down. However, many suppliers hedged against that and bought long-term contracts. As that unwinds into the energy system, prices will come down and the price cap will reflect that. Later in the year, we should hopefully see a reduction in the price cap. At the same time, of course, government support will begin to be unwound, so we will have to see how those two factors interact.

It will be passed on when the price cap is reviewed by Ofgem. It is worth stating the amount of government support being given to all consumers. The reality is that over the winter the Government—the taxpayer—have been paying approximately one-third overall of people’s energy bills. There is a considerable amount of government support because of the massive increase in prices due to Putin’s war. Thankfully, the world has responded, and prices are coming down. However, many suppliers hedged against that and bought long-term contracts. As that unwinds into the energy system, prices will come down and the price cap will reflect that. Later in the year, we should hopefully see a reduction in the price cap. At the same time, of course, government support will begin to be unwound, so we will have to see how those two factors interact.

To ask His Majesty's Government, further to the Written Answer by Lord Callanan on 30 January (HL4760), what assessment they have made of the case for restricting the imposition of prepayment meters on energy consumers.

To ask His Majesty's Government, further to the Written Answer by Lord Callanan on 30 January (HL4760), what assessment they have made of the case for restricting the imposition of prepayment meters on energy consumers.

To ask Her Majesty's Government what recent assessment they have made of the ability of Trading Standards to pursue sellers of toys not in compliance with UK safety regulations.

To ask Her Majesty's Government what recent assessment they have made of the ability of Trading Standards to pursue sellers of toys not in compliance with UK safety regulations.