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Gas Storage

5 March 2009

Q: The volume of gas that we have stored is bound to impact on domestic gas bills, but may I tell my hon. and learned Friend another reason for the increase in domestic gas bills? It happens when the units of gas in underestimated bills are aggregated together in a catch-up bill and charged at the tariff that applies at the time of the catch-up bill. That results, of course, in an increased gas bill. Not many people know that the companies will recalculate, if requested. Does my hon. and learned Friend agree that when a catch-up bill is sent to a consumer, there should be a note on the bill informing the consumer that they can ask for a recalculation?

A: My hon. Friend raises an important point. It is, I hope, one of the issues that Ofgem will consider as part of its overall review of energy companies' bills. Ofgem has expressed concerns about some of the ways in which billing has taken place, and I will make sure that my hon. Friend's point is drawn to Ofgem's attention.