Energy Bill [HL]

My Lords, I am not sure of the relevance of this argument to the actual clause before us. The issue here is that prepayment meters have a history, whether you are fuel-poor or not, of having significant charges over and above the cost reflectivity and over and above the degree of security which the supplier can assume on other means of payments. In other words, if you are on direct debit, there is a reasonable degree of security, but it is slightly less than on a prepayment meter, which is an almost absolute security of payment, because you do not get any electricity unless the meter is turning. Historically, the issue has been pretty appalling. Frankly, the regulator denied the problem for many years. I declare my previous interest as former chair of Consumer Focus. Consumer Focus and Energy Watch banged on for years about that before the point about cost reflectivity was finally accepted by Ofgem. It does not matter whether the reason that you have a prepayment meter is because you are fuel poor or because your landlord, in various tenancy situations, insists on you having a prepayment meter. It does not matter whether it is a second home. It does not matter whether you are in a mansion block in Kensington, where many are on prepayment meters—generally speaking, the income of that particular subgroup is somewhat higher than the fuel-poor. The point is that they were being ripped off. As I understand it, the new clause is proposed by my noble friend because we do not want a similar nontransparent rip-off to occur by clobbering the structure of tariffs on prepayment to hide the fact that, as a result of having a prepayment meter, you have a differentially poor repayment profile under the Green Deal. The new clause also touches on a substantial point that, had I been present on Second Reading, I would have made: the fact that, at the same time as we are introducing the Green Deal, we are mandating energy supply companies over the next 10 years to install smart meters in every household in the land. The energy companies will have to carry out that provision, over which the landlord, the tenant or the owner-occupier has no real control. Whereas the Green Deal will be a voluntary sign-up, smart meters will not. I happen to be in favour of smart meters for energy efficiency, carbon saving and behaviour change reasons, but we could get those three things muddled up. It may be that the same supplier who is offering you a Green Deal is at almost the same time proposing to put the smart meter in, as they will be required to do, and perhaps negotiating with you the terms of your operation of a prepayment meter. The point of the new clause, as I understand it, is to separate those different elements so that there is no distortion for the consumer. The wider point is whether the rollout of the Green Deal can in a conscious, planned way relate to the rollout of smart meters. The reality is that, on the one hand, people are going to go into every home in the land under the smart meter installation programme; and, on the other, somebody will be offering a deal under the Green Deal. A lot of householders will be seriously confused as to which bit they have to accept, and the repayment for that, and which bit they have some option and flexibility about, and they do not have to take the deal at all if they do not want to. I assume that paragraph (a) in the new clause relates to any meter being installed, including the new requirement that smart meters be installed. We have to separate those things in terms of repayment; but in terms of delivery, there may be some benefit in associating them. I would like the Minister to comment on that point, and particularly to endorse the point lying behind my noble friend's amendment: that those three separate issues must be disentangled.