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Energy Bills: Self-disconnection
25 January 2023
Lead MP
Graham Stuart
Debate Type
Ministerial Statement
Tags
EnergyBusiness & Trade
Other Contributors: 24
At a Glance
Graham Stuart raised concerns about energy bills: self-disconnection in the House of Commons. A government minister responded. Other MPs also contributed.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Government Statement
The Government recognise the importance of protecting customers, particularly those on prepayment metres. The Secretary of State has set out a five-point plan to support consumers in difficulty, including offers of additional credit, debt forgiveness or advice. Ofgem is reviewing supplier practices and taking action against self-disconnection risks. The £400 discount under the energy bills support scheme and the energy price guarantee provide significant cost-of-living support for households. The Government urge suppliers to increase voucher redemption rates under this scheme. There are established industry rules to reduce the risk of self-disconnection, which must be followed rigorously.
Kenny MacAskill
Lab
East Lothian
Question
Raises concerns over high numbers of households self-disconnecting from smart metres due to inability to afford heating or power. Asks Minister to end forced installation of prepayment metres, abolish higher standing charges and tariffs for prepayment metres, and introduce a social tariff for the poorest and most vulnerable.
Minister reply
Acknowledges concerns but highlights that physical disconnections are rare. Prepayment metre installations should be last resorts; emergency credit is offered when metres run out. Ofgem ensures costs and charges are commensurate with actual delivery costs, now superseded by energy price cap.
James Duddridge
Con
Castle Point
Question
Compliments Minister's work and inquires about naming and shaming suppliers on prepayment vouchers performance to ensure they meet the median level or top quartile.
Minister reply
Acknowledges the importance of raising awareness for redeeming vouchers. Suppliers have been brought together to share best practices, and a list has been published to encourage better performance across all companies.
Alan Whitehead
Lab
Glenrothes
Question
Concerned about the issue of prepayment metres being forced onto customers and self-disconnection due to high bills. Asked what measures are in place to stop energy companies issuing warrants and switching smart metres to prepay mode during price hikes. Also questioned why alternative help schemes for those living in park homes are delayed.
Minister reply
Acknowledged the complexity of setting up an alternative funding scheme for indirect payment customers. The Government aims to have a portal live by February 27th, ensuring that local authorities can securely access it and process applications efficiently.
Selaine Saxby
Con
North Devon
Question
Asked the Minister for reassurance on delivering energy payments to park home residents as quickly as possible.
Minister reply
Acknowledged that identifying locations of park homes is complex. The portal will be available by February 27th, and local authorities must have a robust system in place to process applications.
Alan Brown
SNP
Kilmarnock and Loudoun
Question
Discussed the issue of fuel poverty and prepayment metres, stating that current measures do not address the needs of those unable to afford bills. Called for a proper social tariff and further energy bill support.
Minister reply
Responded by highlighting support measures already in place, such as additional cost-of-living support and EBSS payments. The Government is considering a social tariff but wants to approach it carefully.
Philip Hollobone
Con
Kettering
Question
Asked about extra support for the 8 million lowest income households, who are often on universal credit or receive pensioners' benefits.
Minister reply
Noted that there is a series of programmes supporting these individuals, including an additional £800 for those on benefits.
Jon Trickett
Lab
Normanton and Hemsworth
Question
Critiqued the Government's efforts, stating that millions live in fuel poverty. Mentioned a constituent with a prepayment metre who received no voucher and was left in cold conditions.
Minister reply
Rejected the idea of socialist intervention in the energy market, arguing it would have negative consequences.
Question
Will the Minister set out how he will communicate with residents of park homes once the scheme goes live? Will there be an alternative way to access the application process rather than just through an online portal?
Minister reply
The Minister stated that they would promote through various groups and local authorities, engage in larger-scale public communications, and provide a telephone support service for those who are not easily able to access the Government portal.
Munira Wilson
Lib Dem
Twickenham
Question
Does the Minister accept that his answers to Members of this House have been misleading regarding off-grid customers and their support scheme? What is he doing to ensure constituents get the support they need?
Minister reply
The Minister acknowledged the delay but explained that a letter stated the scheme would open in January, which was true. The pilot showed delays necessitating a February opening, with briefings given to Members of the House for transparency.
Hilary Benn
Lab
Leeds South
Question
Does the Minister's position that no one should be physically disconnected from their energy supply extend to those on prepayment metres? What further action will he take?
Minister reply
The Minister explained that physical disconnection differs from prepayment metres, where people can reconnect once they have money to top up. Prepayment metres are a last resort but ensure access to energy.
Question
What support will residents served by communal heating systems operated by non-regulated companies such as Switch2 receive?
Minister reply
The Minister thanked Alison Thewliss for her question and offered to follow up with details on specific points raised.
Stephen Doughty
Lab Co-op
Cardiff South and Penarth
Question
When the portal opens on 27 February, how long will it take for those people to get their payment? What advice can he give them in the interim?
Minister reply
The Minister explained that while he hopes the scheme will open on 27 February, exact timelines depend on verification by local authorities. He advised against turning off heating or allowing debt to build up.
Alistair Carmichael
Lib Dem
Orkney and Shetland
Question
What reach does the scheme expect for those relying on alternative fuels, and how long will it take for the remainder to get their money?
Minister reply
The Minister committed to seeking further details regarding the majority group of individuals reliant on alternative fuels. He indicated that a portal similar to EBSS would be used.
Question
What guarantee is there that the scheme will open on 27 February and payments will get through? What measures are being taken?
Minister reply
The Minister expressed confidence in opening the scheme by 27 February, working with local authorities to train staff for processing payments. He acknowledged it was a busy time but committed to making every effort.
Daisy Cooper
Lib Dem
St Albans
Question
Up to 170 park home households in Daisy Cooper's constituency are still waiting for their £400 energy support payment. She suggested that the Minister empower local authorities to distribute emergency funds immediately, but he is focused on ensuring the portal opens by Monday 27 February.
Minister reply
The minister understands her frustration and is working towards opening the portal on or before Monday 27 February to ensure payments can be made.
Question
In Wales, there are consistently more smart metres disconnected than in Scotland. Hywel Williams asked why this disparity exists.
Minister reply
The minister is meeting suppliers later to discuss emergency credit and repayment programmes to help prevent disconnections.
Question
Anne McLaughlin wrote to the Secretary of State in September about self-disconnection issues but has not received a response. She requests an urgent meeting with the APPG on prepayment metres.
Minister reply
The minister will instruct his office to reach out and set up a meeting with the APPG as soon as possible.
Question
Local authority capacity issues are cited as part of the delay in rolling out the payment. Holly Lynch asks how local authorities can be supported to roll it out faster.
Minister reply
The minister is working with local authorities on pilots and providing guidance so that trained staff can use the systems to make payments.
Question
Promises of reviews by Ofgem are not timely for people struggling now. Drew Hendry asks if the Minister will turn up the heat on Ofgem.
Minister reply
The minister meets Ofgem regularly and ensures they supervise suppliers, aiming to ensure that suppliers fulfill their licence conditions.
Helen Morgan
Lib Dem
North Shropshire
Question
People in marinas and on houseboats are being charged a commercial rate with VAT and face self-disconnection. Helen Morgan asks if offering money in the spring is too late.
Minister reply
The minister acknowledges their frustration but explains the complexities of rolling out support earlier, noting that electricity supplied by commercial suppliers has been reduced through direct intervention.
Question
Alternative fuel users have not received help and no announcement was made for them. Jonathan Edwards asks if the Minister will put pressure on the Treasury to announce next winter’s support.
Minister reply
The minister assures that they are looking at cost pressures across different markets, including rural areas around the UK.
Jim Shannon
DUP
Strangford
Question
Businesses in Newtownards face bankruptcy due to high energy prices. Jim Shannon asks if a small business relief fund could be considered.
Minister reply
The minister highlights the EBRS and upcoming Energy Bills Discount Scheme, adding that they will consider further support for businesses using alternative fuels.
Question
There cannot be justification for premium charges associated with prepayment metres. Patrick Grady suggests raising this point with companies.
Minister reply
Ofgem regulates the area and will require cost-reflective charges only, as per the energy price cap.
Shadow Comment
Kenny MacAskill
Shadow Comment
Shadow raises concerns over high numbers of households self-disconnecting from smart metres due to inability to afford heating or power. Calls for an immediate end to forced installation of prepayment metres, abolishment of higher standing charges and tariffs for prepayment metres, and introduction of a social tariff for the poorest and most vulnerable.
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