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Small Business Energy Bills

Volume 454: debated on Thursday 14 December 2006

To ask the Secretary of State for Trade and Industry what guidelines energy suppliers are required to adhere to on managing small businesses’ energy debts. (105462)

There are no guidelines in respect of the business energy sector. Debt arrangements are a contractual matter between the supplier and the customer.

To ask the Secretary of State for Trade and Industry what guidelines or codes of practice are in place to protect small businesses from the disconnection of their gas or electricity supply. (105471)

The Office of Gas and Electricity Markets (Ofgem) is responsible for the regulation of gas and electricity supply. The Energy Retail Association code of practice on disconnection applies only to domestic customers.

To ask the Secretary of State for Trade and Industry if he will discuss with Ofgem extending the level of regulatory protection given to small businesses in the energy market. (105270)

The approach to regulatory protection in respect of gas and electricity broadly reflects that in general consumer law. It is open to Ofgem to consider whether and how such protection should be extended.

To ask the Secretary of State for Trade and Industry what redress is available to small businesses that have been mis-sold (a) energy or (b) fixed-line telecommunications contracts. (105305)

Small businesses that have been unable to resolve complaints with their gas and electricity supplier may seek assistance from the statutory consumer body, Energywatch, as well as seeking redress through the courts. Small businesses that have been mis-sold fixed-line telecommunications contracts have access to alternative dispute resolution schemes, which all telecommunications providers are obliged by the regulator, Ofcom, to be members of, as well as being able to seek redress through the courts.

To ask the Secretary of State for Trade and Industry what protection from the mis-selling of contracts is given to small businesses in the (a) energy and (b) fixed-line telecommunications markets. (105307)

As in general consumer law, regulatory protection in relation to mis-selling does not extend to the business market for gas and electricity. The regulation of the fixed-line telecommunications market is the responsibility of Ofcom. All companies selling fixed-line telecoms services are required by Ofcom to draw up mandatory codes of practice consistent with published guidelines and then comply with these. If companies breach these obligations Ofcom’s powers now include the ability to secure written undertakings from companies about their sales and marketing practices. Ofcom has taken enforcement action and four investigations are already complete, with fourteen enforcement notices issued to six of the worst offenders. These have secured significant changes to behaviour to ensure consumers’ rights are protected, including action to require repayment of monies to affected consumers. Ofcom has also already fined one company the maximum possible 10 per cent. of its turnover.