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Energy: Small Businesses

Volume 454: debated on Monday 11 December 2006

To ask the Secretary of State for Trade and Industry what length of cooling-off period energy suppliers are legally obliged to offer small businesses which agree to energy supply contracts. (104598)

Suppliers are not required, either in general consumer law or the regulations governing the marketing of gas and electricity, to offer a cooling-off period to non-domestic customers when offering a supply contract. Non-domestic customers, who have a complaint against a supplier that they have been unable to resolve, may pursue it through the statutory gas and electricity consumer body, Energywatch, or through the courts.

To ask the Secretary of State for Trade and Industry what (a) regulatory and (b) self-regulatory protection is afforded to small business consumers in the (i) energy and (ii) fixed-line telecommunications markets. (104599)

GB energy markets are regulated by Ofgem, whose principal statutory objective is to protect the interest of consumers, including small businesses. Ofgem's main role is to issue and enforce licences by which participation in the GB energy sector is required. Attached to these licences are various industry and best practice codes to ensure all users get the best deal. Energywatch, the statutory consumer body, can investigate complaints on behalf of electricity and gas users.

The regulation of the fixed line telecommunications market is the responsibility of Ofcom. Ofcom's principal statutory duty is to further the interests of consumers, including small businesses. Ofcom imposes conditions on fixed line providers to ensure all users get the best possible deal from the market and there are also various industry codes in place to protect the interests of users. In addition Ofcom requires that all fixed line providers must be members of dispute resolution schemes, which can investigate complaints on behalf of users, including small businesses.

To ask the Secretary of State for Trade and Industry what recent discussions he has had with (a) Ofgem and (b) energy suppliers on the level of regulatory protection afforded to small businesses in the energy market. (107717)

The Department has regular meetings with Ofgem and suppliers, at which a range of issues are discussed. As both my right hon. Friend the Secretary of State and Ofgem share a statutory principal objective of protecting the interests of consumers, including small businesses, consumer protection is at the heart of energy regulatory policy. Specifically, I recently met intermediaries representing suppliers to the industrial and commercial market at which a broad agenda was addressed.

To ask the Secretary of State for Trade and Industry what assessment he has made of the level of regulatory protection afforded to small businesses in the energy market; and if he will make a statement. (107718)

GB energy markets are regulated by Ofgem, whose main role is to issue and enforce licences by which participation in the GB energy sector is required. Attached to these licences are various industry and best practice codes to ensure all users get the best deal. Ofgem’s principal statutory objective is to protect the interest of consumers, including small businesses. As such, GB customers are well protected by the current regulatory regime. There is also the statutory consumer body, Energywatch, which can investigate complaints on behalf of electricity and gas users.