§ 30. Mr. Hilary BennTo ask the Secretary of State for Trade and Industry if he will make a statement on gas and electricity charges for pre-payment meter customers. [149035]
§ Mr. HainCharges for pre-payment meter customers are generally higher than those for direct debit and standard credit customers. This reflects the additional costs of supplying and maintaining the meters and the infrastructure that supports them.
The Government recognise that pre-payment meter use is concentrated among the poorest members of society (although pensioners, who make up half of the fuel poor, are low pre-payment meter users). They attach considerable importance to reducing these costs and have put in place a number of measures to drive down prices. The Utilities Act 2000 gave Ofgem and the new Gas and Electricity Consumer Council a specific responsibility to have regard to the interests of vulnerable individuals, including those on low incomes. The Act also provides a reserve power to take action if some groups of customers are not benefiting to the same extent as others from the competitive market.
The regulator, the Office of Gas and Electricity Markets (Ofgem), has taken a number of measures to assist pre-payment meter customers following the publication of its social action plan last year. In April 2000, Ofgem introduced a licence condition that limited to £15 the surcharge that public electricity suppliers can charge to cover the cost of supplying electricity through prepayment meters. Ofgem's proposals for removing suppliers' rights to block transfers on the ground of debt are designed to improve access to the competitive market for pre-payment meter customers.
Energy companies are developing programmes aimed at low income and disadvantaged customers. Some of these, including reduced charges, new energy efficiency programmes and improved access to other payment methods, will directly benefit pre-payment meter customers.