5. Member Debate under Standing Order 11.21(iv): Prepayment meters and energy advice services

Part of the debate – in the Senedd at 4:03 pm on 22 March 2023.

Alert me about debates like this

Photo of Jane Hutt Jane Hutt Labour 4:03, 22 March 2023

Diolch yn fawr, Dirprwy Lywydd. I welcome today's debate on prepayment meters. It's a national scandal the way consumers, often the poorest in our communities, have been treated. Jack Sargeant has been at the forefront of the campaign to expose this scandal, and the Welsh Government not only welcomes, but supports this motion today. I thank all the Members who've spoken today and contributed. It's good to see the whole of the Senedd—you've united us all behind your motion with such powerful speeches.

The cost-of-living crisis is having a detrimental effect on all of our living standards, but it's having a more devastating effect on the households who are least able to pay. And yet the energy supply market, which provides an essential service, operates in such a way that vulnerable households, already struggling to pay their bills, face the threat of having prepayment meters forced upon them. In 2022, approximately 200,000 households in Wales relied on prepayment meters for their mains gas and electricity, and this represents 15 per cent of all households. Twenty-four per cent of tenants in the private rented sector use prepayment meters, and almost half of social housing tenants rely on prepayment meters. Dirprwy Lywydd, we were all shocked, weren't we, and appalled to see households, including those who are clearly vulnerable, being transferred to prepayment meters against their will.

Alongside Jack Sargeant's representations and other campaigners', it's of further concern that it took a journalist to highligh the issue, as Jack has said, when the regulator Ofgem has the regulatory role to prevent this occurring. It’s clear that the existing rules and how they are enforced and not working. This has been reflected in contributions this afternoon. They’re not protecting the most vulnerable in society. I’m meeting Ofgem on Monday, and I will reporting back in full on the contributions made on this motion today. I’ve been consistently clear: householders who’ve been subjected to forced use of a prepayment meter—either through the wholly flawed warrant process, or because they were encouraged to do so, perhaps not appreciating alternatives available to them—must be offered the opportunity to revert to their previous meter at no cost. I think that call is also being supported this afternoon.

As a result of the exposure of this scandal, the practice of forced installation of prepayment meters was halted, but only temporarily. It was halted and we welcomed that, but it was only temporary. I’ve regularly made the point to the UK Government and to Ofgem that it was premature to allow the warrant process to continue from the end of this month. If you recall, it was just halted to the end of March, risking further vulnerable households being forced onto meters against their will whilst the Ofgem investigation was ongoing. So, I think, colleagues, it is important to record today that Ofgem’s chief executive announced on 14 March that they will continue that ban and they’ll only lift it when and if firms follow Ofgem’s new code of practice. I shall be pressing for that ban to continue indefinitely. It’s been commented on about the code of practice—I think that ban has to continue indefinitely, and I’m sure you would support me with that.

It is vitally important that Ofgem regulate the industry effectively. I’ve sought assurances at board level and I’ve asked that if they don’t have sufficient powers and interventions, then we would like to help them to press for those powers.