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My Lords, energy suppliers are not marking their own homework. Ofgem very closely monitors them. Not all suppliers have been given permission to restart involuntary installations. They have to put in place a strict code of conduct and make at least 10 attempts to contact the relevant customer. They have to put in place relevant prepayment plans and credit payment plans, if necessary, taking into account the customer’s ability to pay, and some prepayment forcible installs are banned completely in the case of vulnerable customers.
My Lords, energy suppliers are not marking their own homework. Ofgem very closely monitors them. Not all suppliers have been given permission to restart involuntary installations. They have to put in place a strict code of conduct and make at least 10 attempts to contact the relevant customer. They have to put in place relevant prepayment plans and credit payment plans, if necessary, taking into account the customer’s ability to pay, and some prepayment forcible installs are banned completely in the case of vulnerable customers.
My Lords, one of Ofgem’s new conditions for energy suppliers, now that they can start forcing prepayment meters again, is that they carry out internal audits to make sure they are complying with Ofgem’s new rules—that is, marking their own homework. Given the trauma to households of forced entry and the bad behaviour of the sector in the past, should Ofgem not get off its backside and instigate its own external audits?
I think that is a bit of broad generalisation, if the noble Lord will forgive me for that. The principle of independent regulators was established a number of years ago throughout many Governments. I think all of us will have our opinions on how good or bad independent regulators are—they sometimes absolve the political system from some blame; that is my personal criticism—but we put in place through legislation the system of independent regulators, and of course we need to keep an eye on how they are doing their job.
I think that is a bit of broad generalisation, if the noble Lord will forgive me for that. The principle of independent regulators was established a number of years ago throughout many Governments. I think all of us will have our opinions on how good or bad independent regulators are—they sometimes absolve the political system from some blame; that is my personal criticism—but we put in place through legislation the system of independent regulators, and of course we need to keep an eye on how they are doing their job.
My Lords, all the regulators seem to be failing the public. Is it because the Government do not want them to do the job properly, or are all our regulators incompetent?
Of course, I am pleased to tell the noble Lord that, since the height of bill rises, the price cap has come down by about 60%. So it is not true that prices are going up; they are coming down, although they are still at a historical high. As I said in response to a previous question, if the customer is not in debt, it is absolutely their choice what kind of meter they have.
Of course, I am pleased to tell the noble Lord that, since the height of bill rises, the price cap has come down by about 60%. So it is not true that prices are going up; they are coming down, although they are still at a historical high. As I said in response to a previous question, if the customer is not in debt, it is absolutely their choice what kind of meter they have.
Does the Minister agree that these energy companies are very fast in putting up their prices but very slow in paying compensation? Does he agree that pensioners and poor people should not be forced to put these meters into their homes if they do not want them?
I think I would agree with the noble Lord’s point: of course you are not responsible for the debt of a previous tenant. The only qualification I would make on that is that, if it is a tenant, the landlord owns the property, so the choice of meter would be subject to the permission of the landlord as well.
I think I would agree with the noble Lord’s point: of course you are not responsible for the debt of a previous tenant. The only qualification I would make on that is that, if it is a tenant, the landlord owns the property, so the choice of meter would be subject to the permission of the landlord as well.
On the basis of that answer, can my noble friend confirm for the public at large, so that there is no doubt, that any tenant who has occupied a property that had a bad credit history before the tenant moved in should have been entitled to have that meter swapped to a normal meter—and that any customer who has been kept on a prepayment meter against their will on the basis of a previous tenant’s history should not have had to suffer that and should be due compensation?
I am happy to hear the noble Lord’s clarification. If I am wrong on that, I will certainly write to him about it.
I am happy to hear the noble Lord’s clarification. If I am wrong on that, I will certainly write to him about it.
That is strictly not true. The tenants in rented property are responsible for their own gas, electricity and water supplies; the landlord is not.
No, we believe that some customers prefer to have prepayment meters, which enable them to manage their credits and debts responsibly. Some customers choose that; some prefer direct debit; some prefer to operate on a normal credit basis. All choices will remain available. As I said, if they are not in debt, it is the customers’ choice as to what payment method they use.
No, we believe that some customers prefer to have prepayment meters, which enable them to manage their credits and debts responsibly. Some customers choose that; some prefer direct debit; some prefer to operate on a normal credit basis. All choices will remain available. As I said, if they are not in debt, it is the customers’ choice as to what payment method they use.
My Lords, I represented one of the most deprived wards in my town for over 20 years. What I learned about these prepayment meters is that they are the bane of the lower-paid. Some of those people wanted them made illegal and to be taken out. Do the Government have any such plans?
Of course, the absence of the noble Lord has been a great loss to the House. While he may complain about the quality of some of the answers, some of us might take issue with the quality of some of the questions. The noble Lord is asking a very broad question about a whole range of regulators. I suppose I would say that perceptions of the quality of regulators may vary.
Of course, the absence of the noble Lord has been a great loss to the House. While he may complain about the quality of some of the answers, some of us might take issue with the quality of some of the questions. The noble Lord is asking a very broad question about a whole range of regulators. I suppose I would say that perceptions of the quality of regulators may vary.
My Lords, I have been away for a couple of weeks, and the answers on my return are no better than when I left. Can I give the Minister the opportunity to answer my noble friend’s question? Which organisation is doing best: Ofsted, keeping our education at a high level; Ofgem, causing problems for the consumers, not the suppliers, as we have heard; or Ofwat, for getting the rivers so polluted? Which is number one on his list?
To ask His Majesty’s Government what steps they have taken to compensate individuals or households who have had pre-payment meters wrongly installed.
To ask His Majesty’s Government what steps they have taken to compensate individuals or households who have had pre-payment meters wrongly installed.
My Lords, suppliers are responsible for paying compensation. It is paramount that customers affected by the involuntary installation of some prepayment meters receive compensation as soon as possible. Suppliers have so far carried out 150,000 assessments to ensure that those impacted get the compensation they deserve. Of those, around 2,500 customers have been identified as requiring compensation, and 1,502 payments worth £342,000 have been made so far. We engage with Ofgem regularly to ensure that suppliers compensate remaining customers promptly.
My Lords, suppliers are responsible for paying compensation. It is paramount that customers affected by the involuntary installation of some prepayment meters receive compensation as soon as possible. Suppliers have so far carried out 150,000 assessments to ensure that those impacted get the compensation they deserve. Of those, around 2,500 customers have been identified as requiring compensation, and 1,502 payments worth £342,000 have been made so far. We engage with Ofgem regularly to ensure that suppliers compensate remaining customers promptly.
My Lords, suppliers are responsible for paying compensation. It is paramount that customers affected by the involuntary installation of some prepayment meters receive compensation as soon as possible. Suppliers have so far carried out 150,000 assessments to ensure that those impacted get the compensation they deserve. Of those, around 2,500 customers have been identified as requiring compensation, and 1,502 payments worth £342,000 have been made so far. We engage with Ofgem regularly to ensure that suppliers compensate remaining customers promptly.
To ask His Majesty’s Government what steps they have taken to compensate individuals or households who have had pre-payment meters wrongly installed.
I understand the point the noble Lord is making, but that is the role of the independent regulator Ofgem. My Secretary of State and Minister Solloway have had regular meetings with suppliers directly and with Ofgem to ensure that they are doing the job correctly and that the assessments are being made correctly, but the noble Lord is right, and we are monitoring the situation closely.
I understand the point the noble Lord is making, but that is the role of the independent regulator Ofgem. My Secretary of State and Minister Solloway have had regular meetings with suppliers directly and with Ofgem to ensure that they are doing the job correctly and that the assessments are being made correctly, but the noble Lord is right, and we are monitoring the situation closely.
I thank the Minister for that Answer. However, as he said, the assessment was carried out by the selfsame people who supplied the enforced prepayment meters in the first place. Does he not see that there is a potential conflict of interest here? Will he say whether the Government have arranged for any independent checks to show that these assessments are accurate and are not simply letting companies mark their own homework?
Of course, if the customer is not in debt, it is their choice whether to have a prepayment meter. There are circumstances in which prepayment meters are fitted involuntarily—the consequences of the scandal that we saw last year are being closely monitored—but, in most cases where a customer is in credit and not in debt, it is their choice whether to accept a prepayment meter or, indeed, a smart meter.
Of course, if the customer is not in debt, it is their choice whether to have a prepayment meter. There are circumstances in which prepayment meters are fitted involuntarily—the consequences of the scandal that we saw last year are being closely monitored—but, in most cases where a customer is in credit and not in debt, it is their choice whether to accept a prepayment meter or, indeed, a smart meter.
My Lords, energy companies will sometimes say that your meter needs to be replaced because it is too old. Of course, this can be used as a ruse to get a prepayment meter installed. Can the Minister say what authority any energy company has to demand that? Who really decides whether a meter is too old? Where does the responsibility lie for this—with property owners, landlords or tenants, who are paying the bills and are often the point of contact? If the Minister cannot answer this question now, I am happy for him to write to me.
To ask His Majesty's Government what steps they are taking to mitigate financial burdens to households which arise from malfunctioning smart meters leading to an inaccurate energy bill.
To ask His Majesty's Government what steps they are taking to mitigate financial burdens to households which arise from malfunctioning smart meters leading to an inaccurate energy bill.
Energy suppliers are obligated under licence conditions to ensure their customers’ smart meters continue to function. Ofgem is responsible for regulating energy suppliers against their obligations. The Department is actively working with suppliers to increase the number operating in smart mode.
Around 92% of smart meters are operating as they should. Smart meters not operating in smart mode will continue to record consumption accurately like a traditional meter, with meter readings taken manually to ensure billing on the basis of actual energy use.
Government encourages any consumer experiencing a loss of smart services to speak to their supplier for further advice and remedy.
To ask His Majesty's Government what assessment they have made of cases of energy supply companies using (1) coercive techniques, and (2) untrue statements, to try to compel customers to install smart meters.
To ask His Majesty's Government what assessment they have made of cases of energy supply companies using (1) coercive techniques, and (2) untrue statements, to try to compel customers to install smart meters.
Energy suppliers must treat customers fairly in line with their Standards of Conduct licence obligations, behave in a fair, honest, appropriate, and professional manner to ensure that consumers receive the right information to make decisions about their energy supply and have a positive experience when dealing with their supplier.
The Government expects energy suppliers to fulfil their regulatory obligations. Ofgem is responsible for regulating energy suppliers against their obligations.
Lords report stage second day. Amendments 63, 64, 73, 75 to 93, 95 and 96 agreed to. Amendment 97 agreed to on division (227 to 194). Amendments 99 to 103 and 105 to 123 agreed to. Amendment 131 agreed to on division (197 to 194). Amendment 133 agreed to on division (208 to 182). Amendment 134 agreed to on division (197 to 186). Amendments 135 and 139 to 143 agreed to. Bill, as amended, ordered to be printed (HL Bill 130).
Lords report stage second day. Amendments 63, 64, 73, 75 to 93, 95 and 96 agreed to. Amendment 97 agreed to on division (227 to 194). Amendments 99 to 103 and 105 to 123 agreed to. Amendment 131 agreed to on division (197 to 194). Amendment 133 agreed to on...
Let me first thank all noble Lords for their amendments, and I thank the noble Lord, Lord Lennie, for the time he gave to discussing this matter. As always, there were valuable contributions from all parts of the House.
On the details of the amendments, Amendment 60, tabled by the noble...
Let me first thank all noble Lords for their amendments, and I thank the noble Lord, Lord Lennie, for the time he gave to discussing this matter. As always, there were valuable contributions from all parts of the House.
On the details of the amendments, Amendment 60, tabled by the noble...
Moved by
Lord Callanan
63: Schedule 9, page 278, line 28, leave out from “after” to end of line and insert ““Part 1 of the Energy Act 2023” (inserted by paragraph 5(a) of Schedule 5 to this Act) insert “or Part 4 of that Act”.”
Member’s explanatory statement
This amendment ensures that the amendment...
Moved by
Lord Callanan
63: Schedule 9, page 278, line 28, leave out from “after” to end of line and insert ““Part 1 of the Energy Act 2023” (inserted by paragraph 5(a) of Schedule 5 to this Act) insert “or Part 4 of that Act”.”
Member’s explanatory statement
This amendment ensures that the amendment...
Moved by
Lord Callanan
64: Schedule 13, page 297, line 16, at end insert—
“(7) Where by virtue of subsection (6)(c) tender regulations provide for the imposition of a financial penalty, they must also include provision for a right of appeal against the imposition of the penalty.”
Member’s explanatory statement
This amendment requires regulations under...
Moved by
Lord Callanan
64: Schedule 13, page 297, line 16, at end insert—
“(7) Where by virtue of subsection (6)(c) tender regulations provide for the imposition of a financial penalty, they must also include provision for a right of appeal against the imposition of the penalty.”
Member’s explanatory statement
This amendment requires regulations under...
My Lords, I thank all Members who have contributed to the debate.
I completely agree with the last point made by the noble Baroness, Lady Blake. It is very important that we use the powers to do exactly what she suggested: to drive the decarbonisation agenda. Despite some of the criticisms,...
My Lords, I thank all Members who have contributed to the debate.
I completely agree with the last point made by the noble Baroness, Lady Blake. It is very important that we use the powers to do exactly what she suggested: to drive the decarbonisation agenda. Despite some of the criticisms,...
Moved by
Lord Callanan
73: Clause 167, page 139, line 34, leave out “negative” and insert “affirmative”
Member's explanatory statement
This amendment makes regulations under Clause 167 (which contains a power to amend certain definitions relating to heat networks) subject to the affirmative procedure.
Moved by
Lord Callanan
73: Clause 167, page 139, line 34, leave out “negative” and insert “affirmative”
Member's explanatory statement
This amendment makes regulations under Clause 167 (which contains a power to amend certain definitions relating to heat networks) subject to the affirmative procedure.
Moved by
Lord Callanan
75: Schedule 16, page 337, line 32, leave out “or Scotland”
Member's explanatory statement
This amendment removes a reference to Scotland in connection with installation and maintenance licences (which do not apply in relation to Scotland).
76: Schedule 16, page 340, line 28, leave out paragraph (c)
Member's explanatory statement
This amendment is...
Moved by
Lord Callanan
75: Schedule 16, page 337, line 32, leave out “or Scotland”
Member's explanatory statement
This amendment removes a reference to Scotland in connection with installation and maintenance licences (which do not apply in relation to Scotland).
76: Schedule 16, page 340, line 28, leave out paragraph (c)
Member's explanatory statement
This amendment is...