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Minister must engage with UK Government and Ofgem over Standing Charges for prepayment meters  

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Tuesday, 4 April, 2023
  • Senedd News
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North Wales MS and Chair of the Senedd’s Cross-Party Group on Fuel Poverty and Energy Efficiency, Mark Isherwood, has questioned the Social Justice Minister over the discussions she is having with the UK Government and Ofgem, since the UK Government asked Ofgem to report back on options for ending the higher Standing Charges paid for by prepayment meter users.

 

Last week, Mr Isherwood backed a motion supporting calls for those forced on to a prepay meter to be properly compensated by energy suppliers and switched back free of charge.

 

Questioning the Social Justice Minister in the Senedd Chamber on Wednesday, Mr Isherwood, who Shadows the Minister, said:

 

“In your Written Statement on the ‘Cost of Living-Energy Crisis’ yesterday, you welcomed both the decision to bring prepayment energy charges in line with customers who pay by direct debit, announced in the UK Government Budget, and Ofgem's extended ban on the forced installation of prepayment meters.  You also stated: 'it is regrettable it took a media investigation to highlight the issue'.

 

“Will you therefore acknowledge that the then UK Business Secretary, Grant Shapps, who you referred to, wrote to the Energy Suppliers before the media investigation highlighted the issue, stating that they should stop forcing vulnerable customers onto prepayment meters?

 

“And, given your reference to the further injustice of Standing Charges that prepayment customers face, what discussions are you having with the UK Government and Ofgem since the UK Government asked Ofgem to report back on options for ending the higher Standing Charges paid for by prepayment meter users?”

 

In her response, the Minister, Jane Hutt MS, said she would be meeting Energy Suppliers the next day.

 

She said: “I'm meeting energy suppliers and I hope it will include those three energy suppliers who have already been exposed today, in terms of the highest levels of forced installations. I'll be raising the standing charges with them. It is for the energy suppliers, but also for the UK Government to act on this.”

 

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