Thursday 28th February 2008

WEIR CRITICISES FAILURE TO TACKLE PROBLEMS FACED BY VULNERABLE ENERGY CUSTOMERS

 

Questioning the Energy Minister in the House of Commons today (Thursday) SNP Westminster Energy spokesperson, Mike Weir MP, has criticised the UK Government’s failure to take action on the ongoing problems faced by vulnerable energy customers.

 

Speaking after the exchange, Mr Weir said:

 

“There is a vast difference between the amounts spent by companies on social tariffs. Many of the social tariffs are more expensive than other tariffs offered by the same companies, with the honourable exception of Scottish and Southern Energy and EDF.

 

“The recent reports that E.on and others are considering introducing deposits or guarantors would be a devastating blow to vulnerable groups, making it very difficult for them to secure an energy supply or indeed to switch suppliers. It would be a deeply anti-competitive move and must be resisted by the UK Government.

 

“It is simply not good enough for the Energy Minister to pass the buck to the regulator. He should make it clear that the proposal is absolutely unacceptable.”

 

ENDS

 

Contact SNP Westminster Press: 0207 219 0074

 

A transcript of Mr Weir’s exchange is detailed below:

 

Mike Weir MP: The amount spent by energy companies on social tariffs is vastly different depending on the companies. But is the Minister aware that E.on, and other companies, have recently announced that they are considering introducing either guarantors or deposits for new customers before they will take them on. Will this not impact greatly on the most vulnerable group and also prevent people from switching suppliers.

 

Malcolm Wicks (Minister of State for Energy): I certainly feel, Mr. Speaker, that all of us are concerned to protect the most vulnerable, and I think there is an issue about how, in this area and in other areas, the poor often end up paying more for units of fuel because of pre-payment meters, which is another issue I’ve raised with the supply companies. On the specifics of that, if the honourable gentleman has concerns, as he has, my advice is to report to the regulator on his concerns.