House of Commons Hansard Debates for 16 May 1995

Schedule 2

The gas code

Amendments made: No. 57, in page 19, line 27, leave out `premises owned or occupied by him'

and insert `particular premises'.

No. 58, in page 19, line 32, after first `gas', insert `conveyed to his premises'.

No. 59, in page 19, line 33, leave out `his' and insert `those'. No. 60, in page 21, line 27, leave out `Sub-paragraph (3) below applies' and insert

`Sub-paragraphs (3) and (3A) below apply'.

No. 61, in page 21, line 41, at beginning insert

`If no other gas supplier has become a relevant supplier,'. No. 62, in page 21, line 45, at end insert--

`(3A) If--

(a) another gas supplier has become a relevant supplier ("the new supplier"); and

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(b) the supplier has assigned to the new supplier his right to recover the charges due to him from the consumer,

sub-paragraph (3) above shall apply as if any reference to the supplier were a reference to the new supplier.'.

No. 63, in page 21, line 46, leave out from beginning to `shall' in line 48 and insert

`Sub-paragraphs (3) and (3A) above shall have effect subject to any restrictions imposed by conditions of the supplier's licence or, as the case may be, the new supplier's licence; and the powers conferred by those sub-paragraphs'.

No. 64, in page 22, line 7, at end insert--

`Deemed contracts in certain cases

7A.--(1) Where a gas supplier supplies gas to a consumer otherwise than in pursuance of a contract, the supplier shall be deemed to have contracted with the consumer for the supply of gas as from the time when he began so to supply gas to the consumer.

(2) Where--

(a) a gas supplier ceases to supply gas to a consumer by reason of his ceasing to be the owner or occupier of any premises; and (b) otherwise than by arrangement with the supplier or another gas supplier, a new owner or occupier of the premises takes a supply of gas,

the supplier shall be deemed to have contracted with the new owner or occupier for the supply of gas as from the time when the new owner or occupier began to take such a supply.

(3) Sub-paragraphs (1) and (2) above shall not apply in any case where gas is supplied or, as the case may be, a supply of gas is taken at a rate which is reasonably expected to exceed 75,000 therms a year.

(4) If a gas supplier at any time so elects, sub-paragraph (3) above shall have effect, so far as relating to him and to supplies begun to be made or taken after that time, as if the reference to 75, 000 therms were a reference to 2,500 therms.

(5) If a gas supplier at any time withdraws an election under sub-paragraph (4) above, sub-paragraph (3) above shall have effect, so far as relating to him and to supplies begun to be made or taken after that time, without the modification made by sub-paragraph (4) above.

(6) The express terms and conditions of a contract which, by virtue of sub- paragraph (1) or (2) above, is deemed to have been made shall be provided for by a scheme made under this paragraph. (7) Each gas supplier shall make, and from time to time revise, a scheme for determining the terms and conditions which are to be incorporated in the contracts which, by virtue of sub-paragraph (1) or (2) above, are to be deemed to have been made.

(8) A scheme under this paragraph may make different provisions for different cases or classes of cases determined by, or in accordance with, the provisions of the scheme.

(9) As soon as practicable after a gas supplier makes a scheme under this paragraph, a revision of such a scheme, an election under sub-paragraph (4) above or a withdrawal under sub-paragraph (5) above of such an election, he shall--

(a) publish, in such manner as he considers appropriate for bringing it to the attention of persons likely to be affected by it, a notice stating the effect of the scheme, revision, election or withdrawal;

(b) send a copy of the scheme, revision, election or withdrawal to the Director and to the Council; and

No. 16, in page 22, line 21, leave out `discontinue' and insert `cut off'.

No. 65, in page 22, line 29, leave out `any' and insert `a consumer's'.

No. 66, in page 22, line 30, leave out `any' and insert `a consumer's'.

No. 67, in page 22, line 44, leave out from `off' to end of line 48 and insert

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`, the consent of the supplier who cut off the supply, or the consent of a person who is or is about to become a relevant gas supplier'.

No. 68, in page 23, line 22, at end insert--

`Failure to notify disconnection of meter

.--(1) This paragraph applies where any meter through which gas has been supplied to any premises is completely disconnected, that is to say, is disconnected both from the service pipe and from all other pipes within the premises.

(2) Except in so far as it is not reasonably practicable for him to do so, the person making the disconnection shall--

(a) ascertain the name and address of the owner of the meter; and

(b) inform that owner of the disconnection and of the address at which the meter will be available for collection.

(3) If any person fails to comply with sub-paragraph (2) above, he shall be guilty of an offence and liable on summary conviction to a fine not exceeding level 2 on the standard scale.'.-- [Mr. Eggar.]

Mr. Eggar: I beg to move amendment No. 17, in page 25, line 2, after `informed' insert

`by any person ("the informant")'.

Mr. Deputy Speaker: With this, it will be convenient to discuss Government amendments Nos. 18 and 19.

Mr. Eggar: It might be of assistance to the House if I mentioned that these amendments give effect to a commitment that I gave in Committee, following our debates there.

Amendment agreed to.

Amendments made: No. 18, in page 25, line 3, leave out from `gas' to `to' in line 8 and insert

`(other than one, in the case of a transporter, that he is required by sub- paragraph (1) above to prevent), he passes the information on, without avoidable delay, either--

(a) to a responsible person, that is to say, a person appearing to him--

(i) to be responsible (whether under that sub-paragraph or otherwise) for preventing the escape; or

(ii)' .

No. 19, in page 25, line 9, at end insert `or

(b) to a nominated person, that is to say, a person nominated by a responsible person to receive information about escapes of gas on his behalf.

(6) There shall be a sufficient compliance with sub-paragraph (5) above if the transporter, supplier or shipper is satisfied that the informant--

(a) intends to pass the information on, without avoidable delay, to a nominated person; and

(b) is in a position to do so.

(7) References in sub-paragraphs (5) and (6) above to the passing on of information to a nominated person are references to the passing on of information to that person in such manner (if any) as may be specified by the responsible person by whom that person was nominated.'

No. 20, in page 26, line 27, leave out `from the supplier' and insert `or'.

No. 21, in page 26, line 29, leave out from third `gas' to end of line 33.

No. 22, in page 26, line 41, leave out `gas fitting or meter' and insert

`meter or other gas fitting'.

No. 23, in page 26, line 46, at end insert--

`Entry for removing fittings and meters

.--(1) This paragraph applies where--

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(a) a person occupying premises supplied with gas through a meter or other gas fitting owned by a public gas transporter or gas supplier ceases to take a supply through that meter or fitting; or (b) a person entering into occupation of any premises previously supplied with gas through a meter or other gas fitting so owned does not take a supply of gas through that meter or fitting.

(2) Any officer authorised by the public gas transporter or gas supplier, after 24 hours' notice to the occupier, or to the owner of the premises if they are unoccupied, may at all reasonable times, on production of some duly authenticated document showing his authority, enter the premises for the purpose of removing the meter or other gas fitting.

(3) Sub-paragraph (3) of paragraph 19 above applies for the purposes of this paragraph as it applies for the purposes of that paragraph.'-- [Mr. Eggar.]

5.30 pm

Mr. Nigel Spearing (Newham, South): I beg to move amendment No. 88, in page 27, line 44, at end add--

`Duties of relevant gas shipper or supplier in relation to gas fittings

23. (1) It shall be the duty of any relevant gas shipper or supplier to make arrangements for the supply of spare parts for, or replacements of, any gas fitting or appliance of a type approved under Regulations made under this Act or under any other enactment. (2) The Secretary of State shall--

(a) make Regulations specifying the nature and extent of the obligations imposed by subsection (1) above upon relevant gas shippers or suppliers; and

(b) monitor the carrying out of those obligations, which may be modified or added to in further Regulations.

(3) Regulations made under subsection (2) above shall be made by statutory instrument which shall be subject to annulment in pursuance of a Resolution of either House of Parliament.'.

We now move to an issue that is also of great importance to the consumers of gas, of whom notionally the Minister is in favour--that is presumably why he has introduced the Bill. I say "notionally", because there is an element of doubt, as we heard during the last debate.

Amendment No. 88, supported by my hon. Friend the Member for Newham, North- East (Mr. Timms), relates to spare parts and the replacement of approved appliances--everything inside the house which is known in the technical jargon as "upstream" of the supply, which means everything the other side of the meter which is the responsibility of the householder who pays for the gas and not of the supplier. Newham knows all about the production and supply of gas. In Victorian times, and until fairly recently--before North sea gas--we had more than 700 acres of land dedicated to this very purpose. We had Beckton, one of the biggest gas works in the world, 90 miles of railway lines, and a workshop capable of making railway locomotives. So gas skills are indigenous to the area.

The beginnings of the gas industry, from the earliest days of the Gas Light and Coke company, whose works were in Marsham street--those round foundations are reputed to have something to do with original gasholders-- were approved in this House. Gas was originally used for lighting; power and heating came later. The rules governing its use were approved in this very House. The interests of the producer were balanced against those of the consumer of a very dangerous but very useful product.

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Over the years, all the private gas companies linked the safety of their product with the safety and interests of consumers. If a gas appliance goes wrong, or is faulty, the consequences are much greater than with electricity. If a fuse blows, that is inconvenient; if there is a gas leak, or something is wrong with a gas appliance, it is a very different matter.

The historic link between the obligations on the supplier and the safety of the consumer and the general public was a principle well-known to this House. I understand, however, that this Bill disaggregates the two. There is, necessarily, a well-known set of regulations relating to approved appliances. One cannot just connect any appliance from any manufacturer to any supply of gas. The calorific value has to be right; the appliance has to be adjusted correctly and approved. If not, problems will follow. That is only common sense.

Over the years, the Gas Light and Coke Company, or North Thames Gas as it became--British Gas as it now is--prized that link. Many of my constituents were involved in gas servicing and were proud of it. Now, for the first time, the pattern is to be disrupted and possibly even destroyed. Time and again with privatisation measures, the Government have given us assurances that all is well. As I shall show briefly, however, this time things have begun to go wrong even before the legislation leaves this House.

Some 200 of the 700 acres that I have mentioned were used, first by the North Thames gas board and then by British Gas, as a service centre for the whole of London, originally, and then for the whole of south-east England. Until not long ago, that service centre was being expanded. Workshops and depots were being closed as far away as Letchworth and other parts of the south-east, and the plan was to build a depot at Bromley-by-Bow, to the east of the River Lea--in West Ham, not Tower Hamlets. It was a good service site with plenty of roads, space and good workshops.

That integrated site is now to be broken up, under the legislation, into five or six units run by different firms. Wire fences are even being put up on the site. That does not seem to make sense, but the Government think it a good thing. The main point about the site is the giant store. My hon. Friend the Member for Newham, North-East and I have visited it, so we know that it houses no fewer than 20,000 spare parts. No doubt there are various types of each part; the mind boggles at how many bits and pieces are stored there in total--all in giant stacks, serviced by the latest unmanned electronically guided vehicles.

The parts are sent to service engineers and distribution depots all over south-east England in just a few hours. The parts are packed away in trailers which return to the warehouse and take them away overnight to the depots. Like many Londoners, I have personal experience of British Gas's relatively good efficiency. It had a bad time in the conversion period, but since then I have found the company extra-efficient.

Within the company finances, I suspect that the process may be something of a loss leader. As we know, however, loss leaders produce more profits and turnover: that is what they are there for. If the organisation is split up by the Bill into different businesses--to be known, I believe, as service and sales--one section will be left more

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vulnerable than the other as the two cease to be integrated and each tries to make a profit for itself without any statutory responsibility for the welfare of the other.

Mr. Stephen Timms (Newham, North-East): On the basis of our visit, does my hon. Friend agree that the facility at Bromley-by-Bow is an impressive operation which has been the beneficiary of substantial investment by British Gas in the recent past? Does he further agree that there is a link between the uncertainty which now hangs over that operation, and perhaps others like it, which the amendment addresses, and the marked fall in customer confidence in British Gas as reported by the Gas Consumers Council in its 1994 annual report?

Mr. Spearing: The fact of rising complaints about the gas industry is well known. I think that I can satisfy my hon. Friend because even before the legislation has completed its passage through the House changes are being made in plans for servicing in particular. Spare parts and servicing go together. If one has an annual inspection of gas appliances--I am not declaring an interest, but all consumers do--if there is something wrong, the service engineer promises to come back the next day or the next week with a spare part. He has got to get it, so it is all part of one thing.

We were told that that giant depot, which I believe is efficient and could have coped with an area larger than south-east England, would be closed-- just like that--and 200 or 300 people were to be made redundant, despite their skills and their pride in their work. Pride in service is the sort of thing that Conservative Members are keen on. Those people were not to be made compulsorily redundant: they could have had a job in Derby or Nottingham or somewhere like that. The whole gubbins, the whole bang shoot, was to be dissipated. I wrote to British Gas to ask what it was all about. I wrote a thesis several pages long, which I will not bore the House with, analysing the Gas Bill. I received a reply from Mr. Norman Blacker, one of the directors of British Gas, who had been allocated the task by Mr. Giordano, who also sent me a short reply. Mr. Blacker said: "Your letter also asks about our Service and Retail operations. Our new Service Business Unit already operates in a highly competitive market. Our reorganisation is designed to allow us to compete effectively with the other 40,000 or so companies operating in this field. At the same time we will maintain our aim of providing high standards of service throughout the country."

Note that he says "maintain our aim", not "maintain the standards". The letter continued:

"Service will be introducing home-based working for its engineers to help increase our competitiveness by removing the need for expensive depots which are only used for a short period every day. Customers will not notice any adverse effect as a result of the service they receive from our engineers, who will obtain their work information and parts directly, rather than having to make a special journey to a depot . . . This should save time during the working day and make for more efficient operations . . . Details of how this home-based working pattern will be implemented are being discussed with the relevant trade unions."

In other words, men in vans, parked outside their homes, having delivered in all sorts of curious places, would cut out the distribution depots.

Mr. Ted Rowlands (Merthyr Tydfil and Rhymney): I draw my hon. Friend's attention to an illustration of exactly that. With a fanfare of trumpets, the noble Lord Walker opened a major depot as part of his valleys initiative. It has now been closed. Instead, the engineers

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go to a green box at the side of a petrol filling station to pick up their bags and instructions. It may be efficient, but it is completely contradictory to the policy adopted only recently by the noble Lord Walker.

Mr. Spearing: I am not surprised to hear what my hon. Friend says. My recollection is that, other than being very successful in public relations as Secretary of State for Wales--

Mr. Rowlands: And Secretary of State for Energy.

Mr. Spearing: --and Secretary of State for Energy, when I think he was very much concerned with gas, he is some functionary in the gas world. I suppose that he must have come under the scrutiny of another noble Lord in a recent report about which we all know--an interesting link.

5.45 pm

I am grateful to my hon. Friend but, unknown to him, I was coming to same topic. In the Observer on 22 January 1995, an article headed

"British Gas engineers go to church for spares"

said:

"British Gas service engineers are using motorway flyovers, pub car parks and church halls as collection points for spare parts, as the company struggles to introduce a new service infrastructure."

Mr. Rowlands: And petrol filling stations.

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