My Lords, I am grateful to noble Lords who have taken part in this debate, and particularly for the interventions by the noble Baroness, Lady Maddock, my noble friend Lord O’Neill and the noble Earl, Lord Cathcart. I think we all recognise that this is a difficult area. The proposals today, which I have not yet read and which we will no doubt be able to look at on Thursday when we come to the Government’s fuel poverty amendments, have a significant bearing on this area.
This is not just about fuel poverty, although that is an important dimension. It is about consumer confidence and understanding and making what ought to be a competitive market, even though it is run by oligopolies, actually work for consumers—for the average bill as well as the bill of the poorest families. The fact is that neither actually gets the best deal at the moment. The objective of trying to ensure that every household, whatever its income, status or pattern of energy use, can relatively easily understand what the best tariff is for it and that there is an obligation on the supplier to ensure that they do so is an objective that we all share, but it is not an objective that is operating in the market at the moment. That is not an outcome of years of regulation, nor of the I do not know how many energy Bills I have sat through from various Governments, nor of how the supplier companies are actually behaving.
This is a very important clause. It must be a very important part of the Government’s armoury in explaining energy policy to consumers, and we have to get it right. The Minister explained that we do not need the three-year limitation on Secretary of State interventions because this is all going to finish by 2018, by which time we will somehow reach Nirvana whereby the regulator is working and the outcomes that we all wish to see are being delivered. I have to be a bit sceptical and go back to what my noble friend said on an earlier amendment: the record of Ofgem in this area and the relationship between Ofgem and the successive departments has not been good. A radical change is probably needed here that goes beyond this clause, but this clause, if properly interpreted and amended, could take it a little further in the course of this Bill. I do not think we are quite at that point yet.
We need to be clear that some of the interventions that the Secretary of State is going to have to take, at least in the short term, are along the lines of the amendments that I have proposed—for example, an intervention on grounds of encouraging energy efficiency. It is true that there are other measures in the Government’s armoury to deal with energy efficiency. I know that the Minister and I do not entirely agree, but as yet the ECO and Green Deal are not effective. They may be in three year’s time, but they are not effective now. The warm home discount, although highly helpful to lots of fuel-poor families, is effectively an override on bills and tariff structures that are not appropriate for fuel-poor families. That is not necessary in the long term. I hope we keep it for the next two or three years, but in the long term, it is not the most appropriate way of dealing with fuel-poor families. You need different overrides.
On transparency and unit costs, I would have thought that the noble Earl, Lord Caithness, was a fairly canny consumer, but the fact that he finds himself totally incapable of understanding even page 1 of his five-page bill indicates the kinds of problems that most consumers have, middling consumers as well as fuel-poor ones. Something closer to the unit price requirement is important. The Minister needs to look at what the consumer is saying here and to come up with a scheme that is useable by the bulk of consumers, including not only the noble Earl but also those who suffer seriously from fuel poverty but who have the nous to try to make some choices of their own.
It is also important that a bill is accurate. Although there have been some improvements, at the moment most bills are estimated, which means that they are wrong. If you complain about them, it is very difficult to get satisfaction. In the long run, smart meters and everything else may solve this problem, but at the moment, there is serious consumer detriment as a result of the way in which bills are presented and enforced. It is very difficult to argue with the company supplying your electricity. It is therefore important that we can intervene to make everything a lot clearer.
I am not suggesting that the Minister should accept every word of my amendments, but she and the Government should accept that there is a need for more sharpness in the interventions that we are now proposing in order to deliver the objectives of energy policy which, by and large, we all broadly agree. Consumer affordability and tackling fuel poverty are part of that, but so are energy efficiency, energy security and ensuring that all energy users are treated fairly without discrimination. All those things need to be part of a proper regulator’s normal method of operation. They have not been. The market has not delivered them and the regulator has not delivered them. A new start for the regulator and a new context in which it is working perhaps might. Clause 127 needs at least to be strengthened in order to increase the possibility and the probably of that outcome. In the mean time, I commend my amendments to the Minister and beg leave to withdraw Amendment 50A.