HC Deb 13 April 1994 vol 241 cc193-4
6. Mr. Kevin Hughes

To ask the President of the Board of Trade when he will be meeting the gas and electricity regulators to discuss the effect of the early payment of fuel bills.

The Minister for Energy (Mr. Tim Eggar)

I meet the gas and electricity regulators from time to time. They are responsible for monitoring the performance of the gas and electricity companies on their regulated business.

Mr. Hughes

At those meetings, will the Minister put pressure on the regulators to ensure that any profits made by the power companies from advance payments will be returned to the customers in terms of reduced bills, especially for those who could not afford to go through the loophole, as the wealthy did, and make advance payments? Will the Minister put pressure on so that those least able to afford the bills will have a reduction?

Mr. Eggar

That is a matter for the companies—[HON. MEMBERS: "Why?"] I have noticed that Midlands Electricity has announced that £500,000 of income derived from interest from pre-payments will be donated to the Neighbourhood Energy Action Trust. I very much congratulate Midlands Electricity on that initiative.

Mr. Congdon

Will my hon. Friend draw to the attention of the regulators the fact that consumers are pleased by the substantial reductions, in real terms, in their energy bills since the privatisation of the once state-owned monopolies?

Mr. Eggar

I absolutely agree with my hon. Friend. The position is in stark contrast to Labour's record when in power, when electricity prices rose by 22 per cent. between 1974 and 1979.

Mr. O'Neill

Is the Minister aware that a number of the regional electricity companies have misled their consumers? East Midlands Electricity has on its form: VAT on electricity—There is no need to make an additional payment and East Midlands Electricity does not encourage you to do so.

Yet in the next sentence, the company says: Additional payments can be made using the payment slip below.

Those contradictory statements were designed to mislead consumers. Surely the least that the Government can do is to point out to the regulator the misleading statements, and the way in which the companies are fleecing people and making vast profits. Neighbourhood energy schemes are just a drop in the ocean compared with people's suffering as a consequence of the 8.5 per cent. increase.

Mr. Eggar

As I understand it from what the hon. Gentleman said, the company was telling consumers about the choice available to them. The nature of the hon. Gentleman's question reveals all. If he were Minister for Energy, which God forbid, he would be saying exactly what must be done in terms of billing and what consumers must do, depriving consumers of all choice.

Mr. Brazier

With regard to the early payment of bills, will my hon. Friend join me in congratulating my constituent, Mrs. Scott, whose home I was privileged to visit on Monday? She has come up with a far more effective way to reduce her fuel bills, using the Government's splendid new home insulation grants which are now available to all pensioners.

Mr. Eggar

I will, of course, congratulate Mrs. Scott and my hon. Friend. I dare say that the scheme will go particularly well in Midlands Electricity areas as I suspect that it has been funded with the help of the Neighbourhood Energy Action Trust.