Energy Bill [HL]

My Lords, Clause 16 permits the Secretary of State to modify gas and electricity supply licences to make provisions as to the steps that can be taken by energy suppliers when the customer defaults in making Green Deal payments. We intend that the existing procedures employed by energy suppliers in the event of a non-payment by a customer will also be used to collect Green Deal charges. The clause also enables provision to be made in licences regarding disconnection of a customer who has defaulted on the Green Deal charge. However, we expect that disconnection will, as is currently the case, be very rarely used by energy suppliers and only in the last resort when all other means of collecting payments have been exhausted. Furthermore, licences prohibit energy suppliers from disconnecting households in the winter months where they know, or have reason to believe, the customer is, for example, a pensioner or lives with other pensioners or those under 18. In addition, the larger energy suppliers have developed their own safety net procedure, which is a commitment to never knowingly disconnect a vulnerable consumer at any time of the year. Clause 16 also allows provision to be made in licences enabling suppliers to require a deposit as security for Green Deal payments in specific circumstances. We intend to exercise this power to ensure that, if a customer is required to provide a deposit in respect of energy supply charges, that deposit can also be used as security for Green Deal payments. We do not intend to allow suppliers to request a deposit solely because a customer has a Green Deal finance arrangement. As is currently the case in the domestic market, a security deposit should only be requested from a domestic customer in specific circumstances. For example, when a customer has a poor credit history and a secure method of payment, like fitting a prepayment meter, is not feasible. All these provisions are necessary to ensure that the Green Deal charge part of the energy bill can be treated equally with the energy component by suppliers when the customer defaults on payment. This will in turn help to secure low interest rates on Green Deal finance, as debt recovery rates on the Green Deal charge should closely match the high historical recovery rates observed for an energy bill. I therefore invite the noble Lord to withdraw his amendment.