MPs are to investigate the process of billing customers for their
gas and electricity in an inquiry looking at whether the rules on
charging for energy are fair for all.
The Energy Security and Net Zero Committee
inquiry will examine
further the case for the standing charge after the Committee concluded in
September that the current structure was ‘unfair and
regressive’.
After the Committee’s inquiry on
preparing for winter heard of widespread support from across
the industry for a social tariff, the inquiry will also look at
how introducing a different price for those on the lowest incomes
might help to improve the fairness of bills.
The new inquiry will additionally look at the rules for forcibly
switching people to pre-payment meters and whether such tariffs
are necessary to deter fraud and theft. Last month the Committee wrote to
Scottish Power after the energy company obtained more than a
hundred warrants to forcibly install prepayment meters in the
homes of customers.
The use of direct debit and how the cost of energy varies
depending on geography will also be examined.
, Chair of the ESNZ
Committee, said: “Over the last few months, the
Committee has heard a range of concerns about the potentially
unfair nature of the way households are billed for their gas and
electricity. Evidence that the daily standing charge
̶ imposed on all bill payers regardless of energy use
̶ has a disproportionate impact on the poorest in society
is a case in point. Our inquiry will be looking at the anatomy of
customers’ energy bills and whether there is fairer way for the
energy firms to recoup the cost of the energy and service they
provide.”
Terms of reference
The Committee is inviting
submissions by February 2nd based on the following
questions:
- What are the justifications for
allowing or removing standing charges from energy bills?
- Should companies be allowed to
provide cheaper bills to those who choose to pay by direct debit?
- Are pre-payment tariffs necessary
to deter fraud and theft and, if so, are the rules in forcibly
switching people to pre-payment properly policed?
- Should there be greater use of
discounts on energy for those who live closer to energy
infrastructure?
- Is it right to expect those in more
remote areas of the country to pay higher amounts in standing
charges?
- How should a social tariff be
implemented to address inequalities in billing?
