§ 3. Mr. Michael Jabez Foster (Hastings and Rye)What action he is taking to ensure that consumers are able to change their energy supplier more easily. [100526]
§ The Minister for Energy and Competitiveness in Europe (Mrs. Helen Liddell)The Government are concerned that some customers find it difficult to switch supplier. My right hon. Friend the Secretary of State has therefore announced a research study to look at consumer motivations for and against switching supplier, so that everyone can benefit from the considerable savings that are to be made.
§ Mr. FosterI thank my right hon. Friend for that response, particularly her comment about setting up an inquiry. Will that inquiry take account of those with pre-payment meters, which are used by many people in 973 my constituency who are on low incomes and who, unlike people who pay by direct debit, have not been invited to take part in the new competition possibilities?
§ Mrs. LiddellMy hon. Friend makes an important point. If customers are able to switch suppliers, they can save about £65 on their annual gas bill and £20 on their annual electricity bill. Many people with pre-payment meters lose out on those opportunities and, indeed, end up having to pay more for the privilege of using such a meter.
The Director-General of the Office of Gas and Electricity Markets has already announced in his social action plan that he wants to investigate pre-payment meters. One of the problems associated with such meters is that many of the people who use them are in debt, and the companies prevent the transfer of anyone who is in debt. In the past year, some half a million transfers were stopped by gas suppliers and 80,000 by electricity suppliers because of debt. That is an important issue because people should be able to reap the benefits of competition. It is also important to try to end the scourge of fuel poverty.