Select Committee on Trade and Industry Fifth Report


1 Introduction


1. In the autumn of 2003, there was an outcry when Mr and Mrs Bates, a pensioner couple, were found dead in their home after their heating supply had been disconnected for non-payment of a bill. It became apparent that the couple had become too frail and confused to cope with things like bill payments, but none of the organisations that might have helped them had been alerted to their problems. One of the issues raised in the media was whether gas and electricity companies should continue to have powers to disconnect customers for non-payment of bills, or whether there should be a ban on such fuel disconnections as there is in relation to water supply. On several occasions during the consideration of the Energy Bill [Lords] in 2004 Members of Parliament and Peers tabled amendments to the Bill to restrict the right of gas and electricity companies to disconnect the fuel supplies of vulnerable customers.[1] Government Ministers opposed these amendments, which were withdrawn. The Energy Act 2004 contains no ban on disconnections.

2. On 8 June 2004, we announced that we intended to conduct a short inquiry into the incidence of fuel disconnections, and the measures taken by the regulator of the gas and electricity industries, Ofgem, and the fuel suppliers to protect the most vulnerable customers. We took oral evidence from the Energy Retail Association (the industry body representing gas and electricity supply companies), Energywatch (the consumer watchdog for the industry), the charities Help the Aged and National Energy Action, and Ofgem. In addition, we received written submissions from a group of academics, Age Concern, Energy Action Scotland, the Parliamentary Warm Homes Group and individual members of the National Assembly for Wales, the Public Utilities Access Forum, Unison, the companies British Gas, EDF Energy and Powergen, and the National Consumer Council. We are grateful to our witnesses and to all those who submitted written evidence.


1   Official Report of the Grand Committee on the Energy Bill, HL, 2 March 2004, cols 230-234; HL Deb, 1 Apr 2004, cols 1505-1510; Stg Co Deb, Standing Committee B, Energy Bill [Lords], 22 June 2004, cols 526-529; HC Deb, 13 July 2004, cols 1344-1351 Back


 
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