Clause 13

Part of Consumers, Estate Agents and Redress Bill – in a Public Bill Committee at 6:30 pm on 17 April 2007.

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Photo of Tom Clarke Tom Clarke Labour, Coatbridge, Chryston and Bellshill 6:30, 17 April 2007

I have no great desire to delay the Committee unduly, but the hon. Lady referred tothe debate in Westminster Hall that I initiated. Incidentally, by moving the amendment, she is doing a great service to those who suffer from the problems that were raised at the time, although I look forward to hearing the response of my right hon. Friend the Minister.

As the hon. Lady has done, it is important to register the fact that the problem is extremely serious. I am not convinced that Ofgem has such powers or, if it has, is willing to use them when inevitably the poorest people who are obliged to use pre-payment meters are placed in the position in which they suffer from the decision of companies that refuse to pass on the reductions in wholesale prices by way of reducing retail prices overa lengthy period, thus putting consumers at a big disadvantage. If those consumers happen to be people on pre-payment meters and are subjected to back payments, it is wholly unacceptable.

I am sure that my right hon. Friend the Minister agrees that the problem must be put right. The hon. Member for Richmond Park mentioned several companies such as Scottish Power. We who represent Lanarkshire constituencies wrote to all the companies, including Scottish Power, on this and other issues. The response was a long letter that we took to mean that such matters were none of our business. A week or so after we received it, Scottish Power, having ensured that its shareholders had the benefits of the reductions in wholesale prices, decided to sell out to the Spaniards, and where were the consumers, including those that the amendment would cover?

I met Ofgem. It knew that I was not satisfied with the response. Given the robust nature of the Minister’s contributions this afternoon, I shall leave the sitting with far greater hope that such issues are being dealt with. Consumers, particularly those who experience enormous difficulty because of gas and electricity prices to the extent that the amendment addresses, will consider that there is a body that sees its responsibility not simply as a supplier to companies, but one that feels an obligation to them. I am sure that, if we agree by the end of our sitting to insist that those responsible for advocating and defending the rights of consumers should show that they have teeth and are prepared to use them, the Minister will respond in that light.