16:43 Albert Owen (Ynys Môn) (Lab)

That this House is disappointed that 17 energy companies in the UK charge their customers more if they do not pay their bills by direct debit; acknowledges that some firms do not charge their customers any extra at all; notes that Department of Energy and Climate Change statistics show that this adds £114 to the average consumer’s bill; further notes that 45 per cent of people do not pay their energy bills by direct debit; recognises that over one million people in the UK do not have access to a bank account; believes that these charges are a stealth tax on the poor; and therefore urges Ofgem to hold an inquiry into these practices, encourages energy companies to operate with more transparency, and urges the Government to consider ways of limiting these charges, such as by introducing a cap.

Energy prices have been a serious issue for some time, but attention has recently been concentrated on it because of the high hikes in those prices. Fuel poverty is very much on the agenda again as many people are feeling the strain of the energy price hikes, particularly in rural areas. I know that the Minister has been before the Energy and Climate Change Committee on this issue. The Department’s own figures show that twice as many people in rural areas as in urban areas are suffering from fuel poverty. It is worth putting that on the record, because people in my constituency and in many constituencies across the UK are really suffering from energy prices.

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17:39 Ms Margaret Ritchie (South Down) (SDLP)

I am glad that the Prime Minister called last week for a probe into these excessive costs, and that the Department of Energy and Climate Change is to investigate the situation. There is clearly a role for Ofgem there, and I will encourage the utilities regulator in Northern Ireland to intervene with Power NI. Any such investigation needs to determine the real cost of the different payment options and the level that should be charged to ensure that one band of customers is not cross-subsidising another.

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17:47 Mr Mike Weir (Angus) (SNP)

Those are just a few of the many issues around energy prices. For many people, the advice from successive Governments to switch suppliers or to pay by direct debit simply does not work. I accept that there are additional costs in different types of payments, but the huge disparity in charges shows that the current system is not working. We need real action on the matter and a fairer and transparent charging system. The motion calls for a cap on charges, which is very reasonable. I appreciate that the problem is not all down to the Department of Energy and Climate Change. As I said earlier, I hope that there will be a cross-governmental effort to deal with the problem.

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17:58 Sammy Wilson (DUP)

Northern Ireland has one of the highest levels of energy bills, and we have certainly had the highest increases in recent years. That is the result of a range of issues, including the green energy policies of central Government that add £100 a year to energy bills. On top of that, perverse incentives lead to direct debit increases for consumers.

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18:21 Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)

This issue does not affect just people on low incomes. I saw one example of somebody who spent quite a bit of money on introducing renewable energy and energy efficiency measures. They reduced their energy usage drastically, only to find that their energy bill went up by almost 600% because such a heavy standing charge was levied on a daily basis. That is another example of how those who are low energy users for various reasons suffer because of the way in which the system operates.

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18:35 The Minister of State, Department of Energy and Climate Change (Gregory Barker)

This is not a new phenomenon, however. The Labour party had 13 years to crack it, but it took no action. Moreover, the Leader of the Opposition spent two years as Secretary of State for Energy and Climate Change, so the question is not “Why has it taken since 2011?”, but “Why did Labour do nothing, between 1997 and 2010, when it had the time, the power, the majority and the authority?” What did Labour do? Zero, zip, nothing. So before they ask, in high dudgeon, why we are not acting faster, would they please explain why they did nothing to help consumers for 13 years? When we get a credible answer, we will give their criticisms more credit.

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18:50 Tracey Crouch (Chatham and Aylesford) (Con)

Those who spoke did so with passion. The hon. Member for Ynys Môn (Albert Owen) did a great job of standing in at the start. He spoke on energy prices in general and praised the work of the Select Committee on Energy and Climate Change. Like him, I was reluctant to switch to direct debit initially, preferring, like millions of other people across the country, to have control over when I pay my bills, based on the energy I use. That was reflected in many contributions this afternoon.

That this House is disappointed that 17 energy companies in the UK charge their customers more if they do not pay their bills by direct debit; acknowledges that some firms do not charge their customers any extra at all; notes that Department of Energy and Climate Change statistics show that this adds £114 to the average consumer’s bill; further notes that 45 per cent of people do not pay their energy bills by direct debit; recognises that over one million people in the UK do not have access to a bank account; believes that these charges are a stealth tax on the poor; and therefore urges Ofgem to hold an inquiry into these practices, encourages energy companies to operate with more transparency, and urges the Government to consider ways of limiting these charges, such as by introducing a cap.

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