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Energy: Fees and Charges

Volume 471: debated on Monday 4 February 2008

To ask the Secretary of State for Business, Enterprise and Regulatory Reform what steps his Department is taking to reduce energy costs for vulnerable people in the community; and if he will make a statement. (183328)

Action to reduce energy costs cuts across several Departments. The Government have a package of measures in place to support vulnerable households to reduce energy costs. We have announced that spend on energy efficiency measures for those on low incomes for the period 2008 to 2011 will be in excess of £2.3 billion.

In addition to this, my Department has promoted measures to reduce energy costs for those not connected to the mains gas network. In partnership with the regional development agencies in north-east England and Yorkshire and Humberside, we have set up two demonstration programmes to provide mains gas and renewable technologies to deprived communities outside the mains gas network. We have also worked with Ofgem to incentivise the large gas distribution networks to provide mains gas connections to deprived communities from April 2008.

In the Energy White Paper we made it clear that we expected energy suppliers to have a proportionate programme of assistance in place for vulnerable customers. Energy companies have responded and have recently increased the level of support they provide to vulnerable customers from £40 million to £56 million this winter.

To ask the Secretary of State for Business, Enterprise and Regulatory Reform what progress is being made on the Ofcom review into utility bill charges for people who do not pay by direct debit. (183410)

The matter raised is the responsibility of the independent regulator, the Office of Communications (Ofcom), which is accountable to Parliament rather than Ministers. Accordingly, I have asked the Chief Executive of Ofcom to reply directly to my hon. Friend. Copies of the Chief Executive’s letter will be placed in the Libraries of both Houses.