Session 2017-19
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1

 

House of Commons

 
 

Thursday 15 March 2018

 

Public Bill Committee Proceedings

 

Domestic Gas and Electricity (Tariff Cap) Bill


 

[First to Third Sittings]


 

Glossary

 

This document shows the fate of each clause, schedule, amendment and new clause.

 

The following terms are used:

 

Agreed to: agreed without a vote.

 

Agreed to on division: agreed following a vote.

 

Negatived: rejected without a vote.

 

Negatived on division: rejected following a vote.

 

Not called: debated in a group of amendments, but not put to a decision.

 

Not moved: not debated or put to a decision.

 

Question proposed: debate underway but not concluded.

 

Withdrawn after debate: moved and debated but then withdrawn, so not put to a decision.

 

Not selected: not chosen for debate by the Chair.

 

 


 

First and Second Sittings

 

Claire Perry

 

Agreed to

 

That—

 

(1)  

the Committee shall (in addition to its first meeting at 9.25 am on Tuesday 13

 

March) meet—

 

(a)  

at 2.00 pm on Tuesday 13 March;

 

(b)  

at 11.30 am and 2.00 pm on Thursday 15 March;


 
 

Public Bill Committee Proceedings: 15 March 2018          

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Domestic Gas and Electricity (Tariff Cap) Bill, continued

 
 

(2)  

the Committee shall hear oral evidence in accordance with the following

 

Table:

 

      TABLE

 

Date

Time

Witness

 
 

Tuesday 13 March

Until no later than

Octopus Energy

 
  

10.15 am

Bulb Energy

 
   

Good Energy

 
 

Tuesday 13 March

Until no later than

Ofgem

 
  

10.45 am

  
 

Tuesday 13 March

Until no later than

Citizens Advice Bureau

 
  

11.25 am

Which?

 
   

National Energy Action

 
 

(3)  

the proceedings shall (so far as not previously concluded) be brought to a

 

conclusion at 5.00 pm on Thursday 15 March.

 


 

Claire Perry

 

That, subject to the discretion of the Chair, any written evidence received by the

 

Committee shall be reported to the House for publication.

 

Agreed to

 


 

Claire Perry

 

That, at this and any subsequent meeting at which oral evidence is to be heard, the

 

Committee shall sit in private until the witnesses are admitted.

 

Agreed to

 


 

Dr Alan Whitehead

 

Withdrawn after debate  3

 

Clause  1,  page  1,  line  3,  leave out “after this Act is passed” and insert “and no later

 

than 30 November 2018”

 

Dr Alan Whitehead

 

Withdrawn after debate  4

 

Clause  1,  page  2,  line  15,  at end insert—

 

“(e)    

the need to ensure that customers on standard variable and default rates

 

have their annual expenditure on gas and electricity reduced by no less

 

than £100 as a result of the tariff cap conditions, and


 
 

Public Bill Committee Proceedings: 15 March 2018          

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Domestic Gas and Electricity (Tariff Cap) Bill, continued

 
 

(f)    

the need to ensure that adequate protection exists for vulnerable and

 

domestic customers, including those customers protected by the

 

safeguard tariff.”

 

Clause Agreed to.

 

Clause 2 Agreed to.

 


 

Dr Alan Whitehead

 

Withdrawn after debate  5

 

Clause  3,  page  3,  line  17,  after “Authority” insert “wholly”

 

Clause Agreed to.

 

Clause 4 Agreed to.

 

Clause 5 Agreed to.

 


 

Dr Alan Whitehead

 

Withdrawn after debate  6

 

Clause  6,  page  4,  line  31,  leave out “6” and insert “3”

 

Clause Agreed to.

 


 

Alan Brown

 

Withdrawn after debate  1

 

Clause  7,  page  4,  line  38,  at end insert—

 

“(1A)    

The Secretary of State shall within six months of the passing of this Act publish

 

a statement outlining the criteria that is to be used by the Authority in the review

 

to assess whether conditions are in place for effective competition for domestic

 

supply contracts.”

 

Dr Alan Whitehead

 

Negatived on division  7

 

Clause  7,  page  4,  line  39,  leave out from “must” to end of line 40 and insert “have

 

regard to the extent to which—

 

(a)    

progress has been made in installing smart meters for use by domestic

 

customers,

 

(b)    

incentives for holders of energy supply licences to improve their

 

efficiency have been created,

 

(c)    

holders of energy supply licences are able to compete effectively for

 

domestic supply contracts,

 

(d)    

incentives for domestic customers to switch to different supply contracts

 

are in place,


 
 

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Domestic Gas and Electricity (Tariff Cap) Bill, continued

 
 

(e)    

the barriers which prevent the customers from switching from different

 

supply contracts quickly and easily are addressed,

 

(f)    

holders of supply licences who operate efficiently are able to finance

 

activities authorised by the licence,

 

(g)    

holders of supply licences have eliminated practices that are to the

 

detriment of customers in their tariff structures,

 

(h)    

District Network Operator costs and dividends are proportionate to

 

expectations and the impact of that on domestic supply contracts, and

 

(i)    

vulnerable and disabled customers are adequately protected.”

 

Clause Agreed to.

 


 

Third Sitting

 

Dr Alan Whitehead

 

Not called  8

 

Clause  8,  page  5,  line  21,  leave out from beginning of line to end of line 24 and

 

insert “—

 

(a)    

the statement published by the Secretary of State in that year under

 

section 7 is to the effect that the conditions are not yet in place for

 

effective competition for domestic supply contracts, or

 

(b)    

effective competition does not exist for vulnerable or disabled domestic

 

customers,

 

    

in which case the tariff cap conditions have effect for the year 2021.”

 

Dr Alan Whitehead

 

Not called  9

 

Clause  8,  page  5,  line  26,  leave out from “unless” to end of line 29 and insert “—

 

(a)    

the statement published by the Secretary of State in that year under

 

section 7 is to the effect that the conditions are not yet in place for

 

effective competition for domestic supply contracts, or

 

(b)    

effective competition does not exist for vulnerable or disabled domestic

 

customers,

 

    

in which case the tariff cap conditions have effect for the year 2022.”

 

Dr Alan Whitehead

 

Not called  10

 

Clause  8,  page  5,  line  31,  leave out from “unless” to second “in” in line 33 and

 

insert “—

 

(a)    

the statement published by the Secretary of State in that year under

 

section 7 is to the effect that the conditions are not yet in place for

 

effective competition for domestic supply contracts, or

 

(b)    

effective competition does not exist for vulnerable or disabled domestic

 

customers,”


 
 

Public Bill Committee Proceedings: 15 March 2018          

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Domestic Gas and Electricity (Tariff Cap) Bill, continued

 
 

Alan Brown

 

Withdrawn after debate  2

 

Clause  8,  page  5,  line  36,  at end insert—

 

“(3A)    

In the case that the tariff cap is extended to have effect for the year 2023, the

 

Secretary of State must publish a statement before the end of that calendar year

 

outlining whether the Secretary of State considers it appropriate to introduce

 

further legislation to introduce a new tariff cap to have effect beyond the date

 

outlined in this Act.”

 

Dr Alan Whitehead

 

Withdrawn after debate  11

 

Clause  8,  page  5,  line  36,  at end insert—

 

“(3A)    

In the case that the tariff cap is extended to have effect for the year 2023, the

 

Secretary of State must publish a report before the end of that calendar year on

 

further measures that can be taken to ensure that conditions are in place for

 

effective competition for domestic supply contracts.

 

(3B)    

The report under subsection (3A) must include, but is not limited to—

 

(a)    

the merits of establishing pooled trading arrangements which matches

 

energy sellers and buyers on the day-ahead and near-term markets; and

 

(b)    

the potential impact of such an arrangement on competition for domestic

 

supply contracts.”

 

Clause 8 Agreed to.

 

Clause 9 Agreed to.

 

Clause 10 Agreed to.

 

Clause 11 Agreed to.

 

Clause 12 Agreed to.

 

Clause 13 Agreed to.

 


 

Alan Brown

 

Not called  NC1

 

To move the following Clause—

 

         

“Duty to consider the needs of vulnerable and disabled domestic customers

 

(1)    

When exercising its duties under section 1, the Authority must have regard to—

 

(a)    

the need to protect vulnerable and disabled domestic customers, and

 

(b)    

the needs of domestic customers protected by the Authority’s safeguard

 

tariff at the date the cap outlined in section 1 comes into force.


 
 

Public Bill Committee Proceedings: 15 March 2018          

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Domestic Gas and Electricity (Tariff Cap) Bill, continued

 
 

(2)    

When exercising their duties under sections 7 and 8, the Authority and the

 

Secretary of State must have regard to—

 

(a)    

whether effective competition exists for vulnerable and disabled

 

customers, and

 

(b)    

additional protection in place for vulnerable and disabled customers.”

 


 

Alan Brown

 

Withdrawn after debate  NC2

 

To move the following Clause—

 

         

“Duty to consider the needs of customers in rural areas

 

(1)    

When exercising its duties under section 1, the Authority must have regard to the

 

need to protect customers in rural areas.

 

(2)    

When exercising their duties under sections 7 and 8, the Authority and the

 

Secretary of State must have regard to—

 

(a)    

whether effective competition exists for customers in rural areas, and

 

(b)    

additional protection in place for customers in rural areas.”

 


 

Dr Alan Whitehead

 

Withdrawn after debate  NC3

 

To move the following Clause—

 

         

“Assessment of extension of the tariff cap to small businesses

 

(1)    

Within three months of the passing of this Act, the Secretary of State shall lay a

 

report before each House of Parliament assessing the merits of extending the

 

tariff cap to small business customers.”

 


 

Dr Alan Whitehead

 

Withdrawn after debate  NC4

 

To move the following Clause—

 

         

“Ongoing relative tariff differential

 

(1)    

The Secretary of State shall, during the term of the tariff cap conditions being in

 

place, develop, ready for implementation, a relative tariff differential.

 

(2)    

A relative tariff differential is a requirement on supply licence holders that the

 

difference between the cheapest advertised rate and the most expensive standard

 

variable or default rate shall be no more than a specified proportion of the

 

cheapest advertised rate.

 

(3)    

The Authority will be responsible for setting the proportion referred to in

 

subsection (2).


 
 

Public Bill Committee Proceedings: 15 March 2018          

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Domestic Gas and Electricity (Tariff Cap) Bill, continued

 
 

(4)    

The relative tariff differential shall take effect on the termination of the tariff cap

 

conditions.”

 

Bill to be reported.

 


 

 

Revised 15 March 2018