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

Part of the debate – in the Senedd at 4:07 pm on 22 March 2023.

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Photo of Jane Hutt Jane Hutt Labour 4:07, 22 March 2023

Thank you very much, Jenny Rathbone. Clearly, there has been a change in the budget last week in terms of the premium. I’m clarifying what exactly that means, because it’s no good going back to the voucher situation, which you raised so rightly earlier on. Unless that premium is levelled and it is actually reflected in the cost, then that will not be good enough, and I will raise that on Monday.

Can I just say also that I’m pleased people raised the issue of standing charges? I think, Mike Hedges, you’ve raised this so regularly. It's a real injustice to prepayment customers. They continued the standing charges and put people in a more vulnerable position. Following a period of self-disconnection, when it becomes impossible to secure further credit, householders find they’re charged for all the days when it hadn’t been possible to obtain a supply. Again, thank you for joining and showing that call that I’m making that these standing charges should be removed for prepayment customers.

Dirprwy Lywydd, we do have to turn to look at ways in which we can improve things. It’s the UK Government who do hold the levers in the energy supply market and they do have the power to make a real difference to vulnerable households. We have called on the UK Government and Ofgem to introduce a social tariff to protect vulnerable households. It is important that they have now agreed to explore this. We must press for that change, because actually, then we could fund energy in a more progressive way. Social tariffs have received positive and broad support.

Legislation in the water industry—and this has been raised—prevents customers from being disconnected, even if in arrears. I’ve urged market change to prevent disconnection; I’ve offered immediate recommendations following on the advice from National Energy Action Cymru and Citizens Advice. I have been also calling on the Chancellor to use the opportunity in this budget not to increase the energy price guarantee, and welcome the fact that that is now remaining at £2,500 until July for a typical household.

Finally, Dirprwy Lywydd, it is important that I pick up on some of the other points that have been raised in the motion. The Welsh Government recognises that trusted advice services are very important, and more than 176,500 people have received energy efficiency advice through the Warm Homes programme since its launch in 2011. That energy advice pilot also tests and measures the effectiveness of providing in-home advice as well. Can I just say that the Minister for Climate Change, on the Warm Homes programme, expects to procure a new demand-led scheme that tackles both the climate emergency and fuel poverty? It is crucial, the next iteration of the Warm Homes programme. There will be no gap in provision between the new and existing programmes, and it will take that fabric-first, Wales-first and low-carbon approach.

Finally, thank you, Dirprwy Lywydd, for enabling us all to contribute. I met Jack Sargeant last week to discuss the findings of his survey and the shocking feedback from his constituents, and I have shared that survey with Ofgem. I'm meeting the chief executive of Ofgem on Monday, and I will be reporting not only on his survey and its outcomes but also on the contributions made in this very important debate today. Diolch yn fawr i chi i gyd.