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Small Businesses

Volume 941: debated on Monday 12 December 1977

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asked the Secretary of State for Energy whether he is aware that the electricity boards now require small businesses when starting up to pay a deposit before they are prepared to supply electricity; and whether he will issue a general direction forbidding this practice.

Electricity boards are required by statute to provide a supply of electricity when it is requested and they are also permitted by statute to ask for a deposit as security for payment where they believe the circumstances justify this. I understand it has always been and continues to be their practice to consider each case on its merits when deciding whether or not to seek a deposit. The size of the business or the amount of consumption does not determine their decisions. Consumers from whom a deposit is requested have a statutory right to seek arbitration on the amount. Interest is paid on deposits, currently at the rate of 10 per cent. per annum.