Speaking in a debate on energy companies charging higher rates to customers who do not pay by direct debit, Alok Sharma highlights the case of the elderly father of his constituent who has built up £1,400 credit on direct debit and asks if Ofgem should be doing more to ensure that energy companies set direct debits at a “fair and reasonable” level.

Alok Sharma (Reading West) (Con): My hon. Friend is a huge consumer champion, not just on this issue, but on many others. More power to his elbow. He makes a good point about the way in which direct debits work. They are not a panacea. Last week, I received an e-mail from my constituent, Mr Balfour, who told me that his 87-year-old father had built up a £1,400 credit because he was paying by direct debit. According to Ofgem, direct debits are meant to be set on a fair and reasonable basis. Does my hon. Friend share my view that we should define in more detail what “fair and reasonable” means?

Robert Halfon: My hon. Friend makes a hugely important point, and I suspect that the Minister will have more to say about it. I welcome the fact that the Government are forcing companies to compensate customers, such as his constituent, who have been mis-sold or overcharged. I know that the Department of Energy and Climate Change has asked Energy UK to set up direct debit best practice guidelines.

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