Consumers, Estate Agents and Redress Bill [HL]

House of Commons

Session 2006 - 07
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Consumers, Estate Agents and Redress Bill [HL]

Consumers, Estate Agents and Redress Bill [HL]
Part 1 — The National Consumer Council
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Enforcement by regulator of section 24 notice
(1)
Where a regulated provider fails to comply with a notice under section 24(1),
the Council may refer the failure to—
(a)
a person prescribed by the Secretary of State by order for the purposes
of this section, or
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(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
regulated provider.
(3)
For the purposes of this section—
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“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);
“regulated provider” means a person listed in the first column of the
following table;
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“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.

Regulated provider
Relevant regulator

A person holding a licence
The Gas and Electricity Markets

20

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

the Gas Act 1986.

A person holding a licence
The Gas and Electricity Markets

under section 6 of the Electricity
Authority.

Act 1989.

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A person holding a licence
The Postal Services Commission.

under Part 2 of the Postal

Services Act 2000.

A water undertaker, sewerage
The Water Services Regulation

undertaker or licensed water
Authority.

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supplier.

(4)
Where a failure is referred under subsection (1), the designated investigator
must—
(a)
consider any representations made by the Council or the regulated
provider, and
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(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).
(5)
If the designated investigator determines that the regulated provider is not
entitled to refuse to comply with the notice, the designated investigator must
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direct the regulated provider to comply with it.

Consumers, Estate Agents and Redress Bill [HL]
Part 1 — The National Consumer Council
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(6)
The designated investigator must give the Council and the regulated provider
notice of—
(a)
a determination under subsection (4)(b) and the reasons for it, and
(b)
any direction under subsection (5).
(7)
An obligation imposed by virtue of subsection (5) on a water undertaker,
5
sewerage undertaker or licensed water supplier is enforceable by the Water
Services Regulation Authority under section 18 of the Water Industry Act 1991
(c. 56) (orders for securing compliance).
(8)
Schedule 2 makes provision about the enforcement of obligations imposed by
virtue of subsection (5) on other regulated providers.
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Enforcement by court of section 24 notice
(1)
This section applies where a person (“the defaulter”) refuses, or otherwise fails,
to comply with a notice given to the defaulter under section 24(1) and the
defaulter is—
(a)
within section 24(3)(c), or
15
(b)
a person in relation to whom this section applies by virtue of provision
made under section 24(7)(b).
(2)
But this section does not apply in relation to a notice if, or to the extent that,
section 25(1) applies in relation to the notice.
(3)
The Council may apply to the court for an order requiring the defaulter to
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comply with the notice or with such directions for the like purpose as may be
contained in the order.
(4)
An order under this section may, in particular, provide that all the costs or
expenses of and incidental to the application are to be borne—
(a)
by the defaulter, or
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(b)
if officers of a company or other association are responsible for the
failure to comply with the notice, by those officers.
(5)
In this section “the court”—
(a)
in relation to England and Wales or Northern Ireland, means the High
Court, and
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(b)
in relation to Scotland, means the Court of Session.
27
Provision of information by the Council
(1)
An authorised person may, by notice, require the Council to supply it with
such information as is specified or described in the notice within such
reasonable period as is so specified.
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(2)
The information specified or described in a notice under subsection (1) must be
information the authorised person requires for the purpose of exercising its
functions.
(3)
“Authorised person” means—
(a)
the Office of Fair Trading;
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(b)
a designated regulator (within the meaning of section 24(9);
(c)
any person specified or of a description specified by the Secretary of
State by order.

Consumers, Estate Agents and Redress Bill [HL]
Part 1 — The National Consumer Council
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(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, an authorised person must have
regard to the desirability of minimising the costs, or any other detriment, to the
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Council.
(6)
If the Council fails to comply with a notice under subsection (1), it must, if so
required by the authorised person which gave that notice, give notice to the
authorised person of the reasons for the failure.
(7)
An authorised person may publish any notice received by it under subsection
10
(6).
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Exemptions from requirements to provide information
(1)
The Secretary of State may make regulations prescribing—
(a)
descriptions of persons to whom the Council may not give a notice
under section 24(1);
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(b)
descriptions of information which a person may refuse to supply in
accordance with a notice under section 24(1) or 27(1);
(c)
circumstances in which a person may refuse to comply with such a
notice.
(2)
No person may be required by a notice under section 24(1) or 27(1) or a court
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order under section 26—
(a)
to provide any information which that person could not be compelled
to supply in evidence in civil proceedings before the High Court or the
Court of Session, or
(b)
to produce any document which that person could not be compelled to
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produce in such proceedings.
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Disclosure of information
(1)
In Schedule 14 to the Enterprise Act 2002 (c. 40) (restrictions on disclosure: list
of enactments under or by virtue of which information is obtained), at the
appropriate place in the list insert—
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“Consumers, Estate Agents and Redress Act 2007.”
(2)
In Schedule 15 to that Act (enactments in relation to which disclosure may be
made), at the appropriate place in the list insert—
“Consumers, Estate Agents and Redress Act 2007.”
(3)
For the purposes of Part 9 of the Enterprise Act 2002 (information) the
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following information is to be regarded as “specified information” within the
meaning of that Part—
(a)
information obtained by the Council under or by virtue of Part 1 of the
the Gas Act 1986 (c. 44), Part 1 of the Electricity Act 1989 (c. 29) or the
Utilities Act 2000 (c. 27);
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(b)
information obtained by the Council under or by virtue of the Postal
Services Act 2000 (c. 26).
(4)
Part 9 of the Enterprise Act 2002 (which among other things restricts the
disclosure of certain information) does not limit the information which may
be—
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Consumers, Estate Agents and Redress Bill [HL]
Part 1 — The National Consumer Council
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(a)
made available by the Council under section 8 or 10,
(b)
included in, or made public as part of, a report of the Council under any
provision of this Part,
(c)
published by the Council under section 19(2) or 24(8),
(d)
published by an authorised person under section 27(7),
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(e)
published by the Council under section 45, or
(f)
published by the Council under section 33DA of the Gas Act 1986 (c. 44)
or section 42AA of the Electricity Act 1989 (c. 29).
(5)
Before disclosing any specified information by virtue of subsection (4) (other
than by publishing it as mentioned in subsection (4)(e) or (f)), the Council or
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authorised person must consult—
(a)
if the information relates to the affairs of an individual, that individual,
and
(b)
if the information relates to the business of an undertaking, the person
for the time being carrying on the business.
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(6)
Before disclosing any specified information by virtue of subsection (4) (other
than by publishing it as mentioned in subsection (4)(e) or (f)), the Council or
authorised person must also have regard to the considerations set out in
subsections (2) to (4) of section 244 of the Enterprise Act 2002.

For this purpose, references to “the authority” in those subsections are to be
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read as references to the Council or the authorised person, as appropriate.
(7)
In this section—
“authorised person” has the same meaning as in section 27;
“specified information” has the meaning given by section 238(1) of the
Enterprise Act 2002 (c. 40).
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Abolition of consumer bodies
30
Abolition of “Energywatch” and “Postwatch”
(1)
The Gas and Electricity Consumer Council is abolished.
(2)
The Consumer Council for Postal Services is abolished.
(3)
Subject to any modifications made by this Act—
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(a)
the functions of the Gas and Electricity Consumer Council under the
Gas Act 1986, the Electricity Act 1989 and the Utilities Act 2000 (c. 27),
and
(b)
the functions of the Consumer Council for Postal Services under the
Postal Services Act 2000 (c. 26),
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are transferred by this section to the Council.
(4)
Accordingly—
(a)
in section 66 of the Gas Act 1986 (general interpretation), for the
definition of “the Council” substitute—
““the Council” means the National Consumer Council;”,
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(b)
in section 111(1) of the Electricity Act 1989 (general interpretation), for
the definition of “the Council” substitute—
““the Council” means the National Consumer Council;”,
(c)
in section 125(1) of the Postal Services Act 2000 (interpretation), after

Consumers, Estate Agents and Redress Bill [HL]
Part 1 — The National Consumer Council
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the definition of “correspondent” insert—
““the Council” means the National Consumer Council,”,
and
(d)
in section 106(1) of the Utilities Act 2000 (c. 27) (interpretation), for the
definition of “Council” substitute—
5
““Council” means the National Consumer Council;”.
(5)
Schedule 3 contains transitional provisions.
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Designation of the Consumer Council for Water for abolition
(1)
The Secretary of State may by order designate the Consumer Council for Water
for abolition.
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(2)
An order under this section must specify the earliest date on which a transfer
order or an abolition order under section 32 may take effect in respect of the
Consumer Council for Water.
(3)
Before making an order under this section the Secretary of State must consult—
(a)
the Consumer Council for Water,
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(b)
the Council, and
(c)
such other persons as the Secretary of State considers appropriate.
(4)
An order under this section may only be made with the consent of the Welsh
Ministers.
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Transfer orders and abolition orders
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(1)
Where the Consumer Council for Water is designated for abolition under
section 31, the Secretary of State may make in respect of it—
(a)
one or more transfer orders;
(b)
an abolition order.
(2)
A transfer order is an order which provides for the transfer to the Council of
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any function of the Consumer Council for Water.
(3)
An abolition order is an order which provides for the abolition of the
Consumer Council for Water.
(4)
No provision of an order under this section may take effect before the date
specified under section 31(2).
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(5)
A transfer order or abolition order may be made only with the consent of the
Welsh Ministers.
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Supplementary provision about transfer and abolition orders
(1)
This section applies where the Consumer Council for Water has been
designated for abolition under section 31.
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(2)
In this section “payment conditions” means—
(a)
in the case of an appointment under Chapter 1 of Part 2 of the Water
Industry Act 1991 (c. 56), conditions included in the appointment by
virtue of section 11(1)(c) of that Act, and

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Part 1 — The National Consumer Council
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(b)
in the case of a water supply licence under Chapter 1A of that Part,
conditions included in the licence by virtue of section 17G(1)(b) of that
Act.
(3)
The payment conditions of such an appointment or licence may (without
prejudice to the generality of sections 11(1)(c) and 17G(1)(b) of that Act) require
5
the payment by the company holding the appointment or licence of sums
relating to any of the expenses mentioned in subsection (4).
(4)
Those expenses are—
(a)
the appropriate proportion of the expenses of the Council (other than
those expenses within paragraph (b) and any expenses relating to the
10
establishment of the Council);
(b)
any expenses of the Council, the Secretary of State or the Consumer
Council for Water which relate to a transfer scheme made in respect of
the Consumer Council for Water under section 35(2)(a) or (7);
(c)
the expenses of the Secretary of State which relate to the abolition of the
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Consumer Council for Water;
(d)
the expenses of expanding an OFT scheme to enable it to cater for water
consumers;
(e)
the appropriate proportion of the expenses of the Office of Fair Trading
on, or in connection with, the support of any OFT scheme.
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(5)
The “appropriate proportion” of any relevant expenses means such proportion
of the expenses as the Secretary of State considers is reasonable having regard
to—
(a)
in the case of expenses within subsection (4)(a), the functions
exercisable by the Council in relation to water consumers;
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(b)
in the case of expenses within subsection (4)(e), the functions under the
OFT scheme which are exercisable in relation to water consumers.
(6)
The Authority may, in accordance with this section, modify any payment
conditions where it considers it necessary or expedient to do so in consequence
of, or of preparations for—
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(a)
the abolition of the Consumer Council for Water, or
(b)
a transfer order or abolition order under section 32.
(7)
The Authority may, in accordance with this section, make such incidental or
consequential modifications of the other conditions which are included in—
(a)
an appointment under Chapter 1 of Part 2 of the Water Industry Act
35
1991 (c. 56), or
(b)
a water supply licence under Chapter 1A of that Part,

as it considers necessary or expedient in consequence of, or of preparations for,
an event mentioned in subsection (6)(a) or (b).
(8)
Before modifying under subsection (6) or (7) the conditions included in an
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appointment or licence, the Authority must consult the company holding the
appointment or licence.
(9)
The Secretary of State may, after consulting the Welsh Ministers, give
directions to the Authority for the purpose of securing that sums relating to
any of the expenses mentioned in subsection (4) are included in the sums
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payable by virtue of payment conditions; and the Authority must comply with
any such direction.
(10)
In this section—

Consumers, Estate Agents and Redress Bill [HL]
Part 1 — The National Consumer Council
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“the Authority” means the Water Services Regulation Authority;
“OFT scheme” means any public consumer advice scheme supported by
the Office of Fair Trading;
“water consumers” means consumers in relation to services provided by
a water undertaker, a sewerage undertaker or a licensed water
5
supplier, in its capacity as such.
Abolition: supplementary provision
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Compensation for loss of office
(1)
The Secretary of State may pay such sums as the Secretary of State may, with
the approval of the Treasury, determine by way of compensation to any person
10
who—
(a)
ceases to be a member of the Consumer Council for Postal Services, the
Gas and Electricity Consumer Council, or the Consumer Council for
Water by virtue of the abolition of the body in question by or under this
Part, or
15
(b)
ceases to be a member of the company called the National Consumer
Council (a company limited by guarantee and registered under the
Companies Acts) by virtue of its dissolution.
(2)
The compensation is payable in respect of loss of office, or loss or diminution
of pension rights.
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Transfer of property etc
(1)
This section applies to—
(a)
the Consumer Council for Postal Services;
(b)
the Gas and Electricity Consumer Council;
(c)
if a transfer order has been made under section 32 (whether or not it has
25
taken effect), the Consumer Council for Water;
(d)
the company called the National Consumer Council (a company
limited by guarantee and registered under the Companies Acts).
(2)
The Secretary of State may direct a body to which this section applies—
(a)
to make a scheme or schemes for the transfer of its property, rights and
30
liabilities to the Council;
(b)
to transfer such property, rights or obligations as are specified in the
direction to a person (other than the Council) so specified (“the
specified transferee”).
(3)
Before giving, varying or revoking a direction under subsection (2), the
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Secretary of State must consult—
(a)
the body to which the direction is to be or has been given,
(b)
the Council, and
(c)
in the case of a direction under subsection (2)(b), the specified
transferee.
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(4)
A body given a direction under subsection (2)(a) must consult the Council
before making a transfer scheme.
(5)
A transfer scheme made pursuant to a direction under subsection (2)(a) has
effect—