Consumers, Estate Agents and Redress Bill [HL]

House of Commons

Session 2006 - 07
Internet Publications
Other Bills before Parliament

Consumers, Estate Agents and Redress Bill [HL]

Consumers, Estate Agents and Redress Bill [HL]
Part 1 — The National Consumer Council
8

(a)
a complaint by a gas consumer against a gas transporter, in respect of
the disconnection of, or a threat to disconnect, the consumer’s premises
by the gas transporter;
(b)
a complaint by a gas consumer against a gas transporter, following
such a disconnection, in respect of a refusal by the gas transporter to
5
reconnect the premises;
(c)
a complaint by a gas consumer against a gas supplier, in respect of the
cutting off of, or a threat to cut off, a supply of gas to the consumer’s
premises by the gas supplier;
(d)
a complaint by a gas consumer against a gas supplier, following such a
10
cutting off, in respect of a refusal by the gas supplier to restore the
supply to the premises;
(e)
a complaint by a gas consumer against a gas supplier, in respect of the
failure of a prepayment system;
(f)
a complaint by an electricity consumer against an electricity supplier,
15
an electricity distributor or a transmission licence holder, in respect of
the disconnection of, or a threat to disconnect, the consumer’s premises
by the electricity supplier, electricity distributor or licence holder;
(g)
a complaint by an electricity consumer against an electricity supplier,
electricity distributor or transmission licence holder, following such a
20
disconnection by the supplier, distributor or licence holder, in respect
of a refusal by the supplier, distributor or licence holder to reconnect
the premises;
(h)
a complaint by an electricity consumer against an electricity supplier,
in respect of the failure of a prepayment system.
25
(2)
Where a complaint to which this section applies is referred to the Council by or
on behalf of the complainant, the Council must investigate the complaint for
the purpose of determining whether it is appropriate to take any action under
subsection (3).
(3)
Where it appears to the Council to be appropriate to do so with a view to
30
assisting in reaching a satisfactory resolution of a complaint referred to it under
this section, the Council must—
(a)
provide advice to the complainant, or
(b)
make representations on behalf of the complainant to the person
against whom the complaint is made about anything to which the
35
complaint relates.
(4)
The Council may refuse to investigate a complaint, or part of a complaint, if—
(a)
the complaint or part appears to the Council to be frivolous or
vexatious;
(b)
the complaint or part falls within a class of matter which a regulatory
40
body is under a duty (whether imposed by or under an enactment or
otherwise) to investigate;
(c)
the complaint or part is being dealt with, or the Council is satisfied that
it would be better dealt with, under an ombudsman scheme or any
other redress scheme or in legal proceedings;
45
(d)
the Council considers that there has been undue delay in the making of
the complaint or part, or the provision of evidence to support it;
(e)
the Council considers that there are other compelling reasons why it is
inappropriate for the complaint or part to be investigated by the
Council.
50

Consumers, Estate Agents and Redress Bill [HL]
Part 1 — The National Consumer Council
9

(5)
The Council may refuse to investigate a complaint until the complainant has
taken such steps as appear to the Council to be reasonable for the purpose of
giving the person against whom the complaint is made a reasonable
opportunity to deal with it.
(6)
In subsection (1)—
5
(a)
in paragraphs (a) and (b) “disconnection” in relation to any premises,
means disconnection from a main of a gas transporter or the
discontinuation of the conveyance of gas to the premises;
(b)
in paragraphs (b), (d) and (g), the references to a gas consumer or
electricity consumer are references to a person who was such a
10
consumer at the time the disconnection of, or cutting off of the supply
to, the premises occurred;
(c)
in paragraphs (e) and (h), references to the failure of a prepayment
system are references to—
(i)
a failure in the facilities for payment for the supply of gas or
15
electricity which results in a consumer with a prepayment
meter being unable to make a payment for the supply of gas or
electricity, or
(ii)
where a payment has been made for the supply of gas or
electricity through a prepayment meter, a case where the
20
supply is not given through the prepayment meter because of a
defect in the meter or in the facilities for payment.
(7)
In this section—
“electricity consumer” means an individual who is a consumer in relation
to electricity supplied by an authorised supplier;
25
“enactment” means—
(a)
an Act of Parliament,
(b)
an Act of the Scottish Parliament, or
(c)
a Measure or Act of the National Assembly for Wales,
whenever passed or made;
30
“gas consumer” means an individual who is a consumer in relation to gas
supplied by an authorised supplier;
“the consumer’s premises”—
(a)
in relation to an electricity consumer, means the premises to
which the electricity supplied to the consumer by the
35
authorised supplier is supplied;
(b)
in relation to a gas consumer, means the premises to which the
gas supplied to the consumer is conveyed by the gas
transporter;
“redress scheme” means a scheme under which complaints may be made
40
to, and investigated and determined by, an independent person.
14
Reference of matters to the Gas and Electricity Markets Authority
(1)
In this section references to a complaint are to a complaint within section
11(1)(a) or to which section 12(3) or 13 applies.
(2)
Where it appears to the Council that a complaint relates to a matter in respect
45
of which any of the Authority’s enforcement functions may be exercisable, the
Council must refer the complaint to the Authority unless it is satisfied that the
Authority is already aware of the matter.

Consumers, Estate Agents and Redress Bill [HL]
Part 1 — The National Consumer Council
10

(3)
Where a complaint to which section 13 applies is referred to the Authority
under subsection (2), the Council is not required to investigate the complaint
under subsection (2) of that section until the Authority has had a reasonable
opportunity to exercise its enforcement functions in relation to the matter to
which the complaint relates.
5
(4)
On investigating a complaint, the Council must inform the complainant if it
considers that the complaint relates to a matter of a kind which can be referred
by the complainant to the Authority under any provision of the Gas Act 1986
(c. 44) or the Electricity Act 1989 (c. 29).
(5)
In this section—
10
“the Authority” means the Gas and Electricity Markets Authority;
“enforcement function”, in relation to the Authority, means any of its
functions under section 28 or 30A of the Gas Act 1986 or section 25 or
27A of the Electricity Act 1989.
15
Reference of matters to the Postal Services Commission
15
(1)
The Council must refer any complaint within section 11(1)(a), or to which
section 12(3) applies, to the Postal Services Commission (“the Commission”) if
the Council considers that—
(a)
the subject matter of the complaint indicates that a condition of a licence
under Part 2 of the Postal Services Act 2000 (c. 26) has been
20
contravened,
(b)
the subject matter of the complaint is a referable matter, or
(c)
it is appropriate to do so.
(2)
The Council and the Commission must, from time to time, agree the
descriptions of matters which are to be referred to the Commission and, for the
25
purposes of subsection (1)(b), a matter is a “referable matter” if it is of a
description for the time being so agreed.
16
Investigations relating to public post offices
(1)
Without prejudice to the generality of section 11, the Council may investigate
any matter relating to—
30
(a)
the number and location of public post offices in England and Wales
and Scotland;
(b)
the number and location of public post offices in Northern Ireland.
(2)
In this section “public post office” has the same meaning as in the Postal
Services Act 2000 (see section 42(3) of that Act).
35
Other functions of the Council
17
Reports by the Council
(1)
The Council may prepare a report in relation to any matter falling within the
scope of its functions.
(2)
The Council may publish any report prepared under this section.
40

Consumers, Estate Agents and Redress Bill [HL]
Part 1 — The National Consumer Council
11

18
Secretary of State’s power to require reports
(1)
The Secretary of State may direct the Council to prepare, and submit to the
Secretary of State within a specified period, a report in respect of any matter
specified in the direction which relates to consumer matters.
(2)
The Secretary of State may publish any report submitted under this section.
5
19
Advice, information and guidance
(1)
The Council may issue advice or guidance to any person with a view to
improving standards of service and promoting best practice in connection with
the handling of complaints made by consumers or any other matter affecting
the interests of consumers.
10
(2)
The Council may publish advice or information about consumer matters if it
appears to the Council that its publication would promote the interests of
consumers.
(3)
For this purpose “information about consumer matters” includes information
about the views of consumers on consumer matters.
15
20
Duty to enter into co-operation arrangements
(1)
It is the duty of the Council and each designated body to enter into co-
operation arrangements under this section.
(2)
In this section—
“co-operation arrangements” means arrangements made by the Council
20
and a designated body with a view to securing co-operation between
them, including—
(a)
the exchange of information between them,
(b)
the co-ordination of any activities they carry on in connection
with their functions relating to the provision of advice or
25
information to consumers, and
(c)
consistent treatment of matters which affect both of them;
“designated body” means—
(a)
the Office of Fair Trading;
(b)
the Consumer Panel established by the Financial Services
30
Authority under the Financial Services and Markets Act 2000
(c. 8) (“the Financial Services Consumer Panel”);
(c)
the Consumer Panel established by the Office of
Communications under the Communications Act 2003 (c. 21)
(“the OFCOM Consumer Panel”);
35
(d)
a person designated by the Secretary of State by order for the
purposes of this section.
(3)
The co-operation arrangements must set out—
(a)
in the case of the Financial Services Consumer Panel, the procedure for
consulting and making nominations for the purposes of paragraph
40
1(4)(a) of Schedule 1 to this Act and section 10(5A) of the Financial
Services and Markets Act 2000;
(b)
in the case of the OFCOM Consumer Panel, the procedure for
consulting and making nominations for the purposes of paragraph

Consumers, Estate Agents and Redress Bill [HL]
Part 1 — The National Consumer Council
12

1(4)(b) of Schedule 1 to this Act and section 17(4A) of the
Communications Act 2003.
(4)
As soon as practicable after agreement is reached between the Council and a
designated body on co-operation arrangements, the Council and the body
must prepare a memorandum setting them out and send a copy of it to the
5
Secretary of State.
(5)
The Council and a designated body must keep under review any co-operation
arrangements entered into by them under this section.
(6)
As soon as practicable after agreement is reached on any changes to co-
operation arrangements, the Council and the designated body to which they
10
relate must revise their memorandum and send a copy of the revised
memorandum to the Secretary of State.
(7)
The Secretary of State must lay a copy of any document received under this
section before each House of Parliament.
21
Power to co-operate and give assistance
15
The Council may make arrangements to co-operate with and give assistance to
any person if it considers that to do so would facilitate or be conducive to the
exercise of its own functions.
22
Voluntary activities
(1)
The Council may provide for any person advice or assistance, including
20
research or other services, as respects any matter in which the Council has skill,
experience or expertise.
(2)
The Council may make such charges as it thinks fit in respect of anything done
in exercise of its powers under this section.
(3)
The Council may spend such sums as it considers reasonable in the
25
exploitation of commercial opportunities arising from the activities it carries
on in the exercise of its functions.
(4)
The Council may—
(a)
establish one or more bodies corporate to exercise on behalf of the
Council such of its functions under this section, in such circumstances,
30
as the Council may determine;
(b)
acquire an interest in an existing body corporate with a view to it
exercising on behalf of the Council such of its functions under this
section, in such circumstances, as the Council may determine.
(5)
The Council may acquire an interest in a body corporate under subsection
35
(4)(b) only with the consent of the Secretary of State.
23
Supplementary powers etc
(1)
The Council may do anything (other than borrow money) which is calculated
to facilitate, or is incidental or conducive to, the exercise of any of its functions.
(2)
The Council must not acquire or dispose of any interest in land, except with the
40
approval of the Secretary of State.

Consumers, Estate Agents and Redress Bill [HL]
Part 1 — The National Consumer Council
13

(3)
Subsection (2) does not apply to an acquisition of an interest in land under a
transfer scheme (within the meaning of section 35).
Information
24
Provision of information to the Council
(1)
The Council may, by notice, require a person within subsection (3) to supply it
5
with such information as is specified or described in the notice within such
reasonable period as is so specified.
(2)
The information specified or described in a notice under subsection (1) must be
information the Council requires for the purpose of exercising its functions.
(3)
The persons referred to in subsection (1) are—
10
(a)
the Office of Fair Trading;
(b)
a designated regulator;
(c)
any person who supplies goods or services in the course of a business
carried on by that person;
(d)
any other person specified or of a description specified by the Secretary
15
of State by order for the purposes of this subsection.
(4)
A notice under subsection (1) may specify the manner and form in which any
information is to be provided.
(5)
Before giving a notice under subsection (1), or specifying the manner or form
in which any information is to be provided, the Council must have regard to
20
the desirability of minimising the costs, or any other detriment, to the person
to whom the notice is to be given.
(6)
If a person within subsection (3)(a) or (b) fails to comply with a notice under
subsection (1), the person must, if so required by the Council, give notice to the
Council of the reasons for the failure.
25
(7)
An order under subsection (3)(d) may provide either—
(a)
that subsection (6) is to apply in relation to a person specified or of a
description specified by the order as it applies to a person within
subsection (3)(a) or (b), or
(b)
that section 26 is to apply in relation to such a person.
30
(8)
The Council may publish any notice received under subsection (6).
(9)
In this section—
“designated regulator” means—
(a)
the Gas and Electricity Markets Authority;
(b)
the Postal Services Commission;
35
(c)
the Water Services Regulation Authority;
(d)
any other person prescribed by the Secretary of State by order
for the purposes of this subsection;
“goods” includes land or an interest in land.
25
Enforcement by regulator of section 24 notice
40
(1)
Where a regulated provider fails to comply with a notice under section 24(1),
the Council may refer the failure to—

Consumers, Estate Agents and Redress Bill [HL]
Part 1 — The National Consumer Council
14

(a)
a person prescribed by the Secretary of State by order for the purposes
of this section, or
(b)
if no person has been so prescribed, the relevant regulator.
(2)
Subsection (1) applies only to the extent that the notice relates to information
which is held or may be obtained by the regulated provider in its capacity as a
5
regulated provider.
(3)
For the purposes of this section—
“designated investigator”, in relation to a failure to comply with a notice
under section 24(1), means the person to whom the failure is referred
under subsection (1);
10
“regulated provider” means a person listed in the first column of the
following table;
“relevant regulator”, in relation to a regulated provider, means the body
listed in relation to the regulated provider in the second column of that
table.
15

Regulated provider
Relevant regulator

A person holding a licence
The Gas and Electricity Markets

under section 7, 7ZA or 7A of
Authority.

the Gas Act 1986.

A person holding a licence
The Gas and Electricity Markets

20

under section 6 of the Electricity
Authority.

Act 1989.

A person holding a licence
The Postal Services Commission.

under Part 2 of the Postal

Services Act 2000.

25

A water undertaker, sewerage
The Water Services Regulation

undertaker or licensed water
Authority.

supplier.

(4)
Where a failure is referred under subsection (1), the designated investigator
must—
30
(a)
consider any representations made by the Council or the regulated
provider, and
(b)
determine whether the regulated provider is entitled to refuse to
comply with the notice by virtue of provision made under section 28
(exemptions from requirements to provide information).
35
(5)
If the designated investigator determines that the regulated provider is not
entitled to refuse to comply with the notice, the designated investigator must
direct the regulated provider to comply with it.
(6)
The designated investigator must give the Council and the regulated provider
notice of—
40
(a)
a determination under subsection (4)(b) and the reasons for it, and
(b)
any direction under subsection (5).