House of Commons. Monday 30 April 2018 CONSIDERATION OF BILL (REPORT STAGE)

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1 1 House of Commons Monday 30 April 2018 CONSIDERATION OF BILL (REPORT STAGE) New Amendments handed in are marked thus Amendments which will comply with the required notice period at their next appearance DOMESTIC GAS AND ELECTRICITY (TARIFF CAP) BILL NOTE This document includes all amendments tabled to date and includes any withdrawn amendments at the end. The amendments have been arranged in the order in which they relate to the Bill. Gill Furniss Bill Esterson To move the following Clause NC1 Ongoing relative tariff differential (1) The Secretary of State may, 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). (4) The relative tariff differential shall take effect on the termination of the tariff cap conditions.

2 2 Consideration of Bill (Report Stage): 30 April 2018 This new clause would allow the Secretary of State to develop requirements in relation to a differential between the cheapest and most expensive rates offered by suppliers, to be put into effect after the termination of the tariff cap. Barry Gardiner Gill Furniss Caroline Flint 5 Clause 1, page 1, line 3, leave out after this Act is and insert, and within five months of this Act being This amendment would require the Authority to insert the standard supply licence conditions within five months of Royal Assent. John Penrose Dame Caroline Spelman John Redwood Nick Herbert Tim Loughton George Freeman Andrew Lewer Mr William Wragg Mr Jacob Rees-Mogg Mark Menzies Neil Parish Julian Sturdy Gordon Henderson Derek Thomas 2 Clause 1, page 1, line 9, at end insert (1A) A cap imposed by tariff cap conditions shall be calculated so as to require that the difference between the cheapest advertised tariff and the most expensive standard variable or default tariff offered by a holder of a supply licence is no more than a specified proportion of the cheapest advertised tariff. (1B) The proportion under subsection (1A) shall be specified by the tariff cap conditions. This amendment would require the tariff cap to be calculated with reference to the difference between supplier s cheapest tariff and most expensive variable or default rate.

3 John Penrose Dame Caroline Spelman John Redwood Nick Herbert Consideration of Bill (Report Stage): 30 April Tim Loughton George Freeman Andrew Lewer Mr William Wragg Mr Jacob Rees-Mogg Mark Menzies Neil Parish Julian Sturdy Gordon Henderson Derek Thomas Clause 1, page 1, line 24, at end insert (c) cheapest advertised rate means the lowest rate or amount charged for, or in relation to, the supply of gas or electricity under any contract available to the customer. This amendment is consequential to Amendment 2 and provides a definition of cheapest advertised rate. John Penrose Dame Caroline Spelman John Redwood Nick Herbert Tim Loughton George Freeman Andrew Lewer Mr William Wragg Mr Jacob Rees-Mogg Mark Menzies Neil Parish Julian Sturdy Gordon Henderson Derek Thomas 4 (e) the ability of the Authority to accurately forecast and model wholesale energy prices, and the need to minimise the impact of inaccuracies on domestic customers and holders of supply licences in the future. (f) the difference between the cheapest advertised rate and the most expensive standard variable or default rate offered by a holder of a supply licence. This amendment would extend the matters Ofgem is required to consider when setting the tariff cap to include the matters listed in the amendment. Chi Onwurah Bambos Charalambous (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 This amendment would require the Authority to ensure that the tariff cap conditions result in customers on standard variable and default rates having their annual expenditure reduced by no less than

4 4 Consideration of Bill (Report Stage): 30 April 2018 Laura Pidcock Bill Esterson (e) the need to ensure that adequate protection exists for vulnerable domestic customers, including ensuring those customers who currently benefit under a cap imposed by the Authority on rates or amounts charged for, or in relation to, the supply of gas or electricity because they appear to the Authority to be vulnerable, retain those benefits. This amendment would require the Authority to have regard to the protection of vulnerable customers, including ensuring those who currently benefit under a safeguard tariff continue to do so. Rachel Reeves Antoinette Sandbach Drew Hendry Anna Turley Peter Kyle Albert Owen Vernon Coaker Wes Streeting Stella Creasy Gareth Snell Ruth Smeeth Ann Coffey Stephen Doughty Liz Kendall Darren Jones Luciana Berger Chuka Umunna Emma Reynolds Catherine McKinnell Rushanara Ali Stephen Kinnock Mr Pat McFadden Graham P Jones Phil Wilson David Hanson Mary Creagh Ellie Reeves 9 (e) the need to ensure that adequate protection exists for (i) customers who benefit from a cap imposed by the Authority on rates or amounts charged for, or in relation to, the supply of gas or electricity on the basis that they appear to the Authority to be vulnerable; (ii) in circumstances where a cap described in sub-paragraph (i) has been withdrawn, customers who would have benefited from such a cap had it still been in force; and (iii) other vulnerable domestic customers. This amendment would ensure that when exercising its functions under this section, the Authority must have regard to protection for vulnerable customers, including those who are protected or (in circumstances where it is no longer in force) would have been protected by a safeguard tariff. 7

5 Consideration of Bill (Report Stage): 30 April Chi Onwurah Barry Gardiner 8 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, (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. This amendment sets out additional matters that the Authority must have regard to when conducting a review of competition for domestic supply contracts. Frank Field 1 Clause 7, page 4, line 39, leave out from which to the end of line 40 and insert (a) progress has been made in installing smart meters for use by domestic customers; and (b) holders of supply licences are using available data, whether collected through smart meters or through other means, to (i) assess the energy consumption patterns of domestic customers; and (ii) use such data to identify, and move domestic customers onto, the most competitive tariff. This amendment requires Ofgem to consider the progress made by energy companies in offering domestic customers the cheapest available rate based on their individual consumption patterns when determining whether there is an effective market.

6 6 Consideration of Bill (Report Stage): 30 April 2018 ORDER OF THE HOUSE [6 MARCH 2018] That the following provisions shall apply to the Domestic Gas and Electricity (Tariff Cap) Bill: Committal 1. The Bill shall be committed to a Public Bill Committee. Proceedings in Public Bill Committee 2. Proceedings in the Public Bill Committee shall (so far as not previously concluded) be brought to a conclusion on Thursday 15 March The Public Bill Committee shall have leave to sit twice on the first day on which it meets. Proceedings on Consideration and up to and including Third Reading 4. Proceedings on Consideration and proceedings in legislative grand committee shall (so far as not previously concluded) be brought to a conclusion one hour before the moment of interruption on the day on which proceedings on Consideration are commenced. 5. Proceedings on Third Reading shall (so far as not previously concluded) be brought to a conclusion at the moment of interruption on that day. 6. Standing Order No. 83B (Programming committees) shall not apply to proceedings on Consideration and up to and including Third Reading. Other proceedings 7. Any other proceedings on the Bill may be programmed. 10 NOTICES WITHDRAWN The following Notices were withdrawn on 26 April 2018: