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Energy Bill second reading in House of Commons

The Energy Bill reaches its second reading in the House of Commons on 9 May, with campaigners pressing MPs to add powers banning the forced transfer of households onto prepayment meters.

A newspaper on a kitchen table beside a model of rules and regulation

The Energy Bill had its second reading in the House of Commons on 9 May1. The Bill, which covers UK home energy regulation and policy, currently makes no provision to ban the forced transfer of households onto prepayment meters (PPMs)1.

An amendment to give Ministers the power to ban forced PPMs has been tabled by Anne McLaughlin, the SNP MP for Glasgow North East, who chairs the All Party Parliamentary Group on Prepayment Meters1. The End Fuel Poverty Coalition and the Warm This Winter campaign back the amendment1. Warm This Winter began a mass action last week urging MPs to support amendments to the Bill1.

Polling published by the Warm This Winter campaign, carried out online among 2,193 people on 4 and 5 May 2023 and weighted to be representative of the GB adult population, found that 50 per cent backed a permanent ban on forced transfers onto PPMs, 23 per cent backed a ban while energy bills stay high, 11 per cent opposed a ban and 16 per cent did not know1. In the same polling, 36 per cent said they were very concerned by media investigations into energy firms using court warrants to force homes to accept PPMs, and 26 per cent were somewhat concerned1.

Energy firms have signed up to a voluntary code of conduct governing forced PPM installation, due to come into force from 1 October 20231. The End Fuel Poverty Coalition argues the guidelines do not go far enough, saying they fail to protect highly vulnerable groups and fail to help tackle rising energy debt1.

"The 18th April Voluntary Code of Conduct to prevent the forced installation of prepayment meters doesn't go far enough, so we need the power to properly regulate energy firms and safeguard vulnerable prepayment meter customers handed to the Secretary of State for Energy Security & Net Zero."
Anne McLaughlin MP, End Fuel Poverty Coalition1

A spokesperson for the End Fuel Poverty Coalition said the Secretary of State had claimed during the PPMs scandal that he did not have the power to ban forced transfers, and urged politicians to give the Government those powers1. Liberal Democrat peer Lord Teverson, who attempted to introduce a PPM amendment at an earlier stage of the Bill, and Labour MP for Liverpool Walton Dan Carden also called for the Bill to be used to ban forced transfers1.

Why it matters for households

A prepayment meter requires payment before energy is used, so a household moved onto one without agreeing to it faces a change in how it pays for gas and electricity, and can be cut off remotely if credit runs out. The Bill as it stands would leave the power to prohibit forced transfers with energy suppliers and their voluntary code rather than with Ministers, which is the point the amendment seeks to change1. For a household's energy independence, the practical question is who decides how a home is metered and on what terms, and whether that decision can be challenged before installation rather than after.

What happens next

The voluntary code of conduct on forced PPM installation is due to come into force from 1 October 20231. The amendment tabled by Anne McLaughlin would give the Secretary of State for Energy Security & Net Zero the power to ban forced transfers1. Whether the Government backs the amendment has not been reported.

Sources1 cited
  1. MPs urged to ban forced PPMs in Energy Bill, endfuelpoverty.org.uk