Examination of Witness (Questions 175-179)
MR ALLAN
ASHER
20 MAY 2008
Q175 Chairman: Thank you very much indeed.
Welcome to this first public evidence session of the Committee's
inquiry into energy prices. I meant to bring with me the folder
of evidence we have received from organisations to this inquiry.
I think I can say we have never had such a large volume of submissions
from the outside world. Your own submission was a particularly
significant contribution to our inquiry. I think I have coped
with most of it. The public have access to the first volume of
your five volumes of evidence to us, the technical submissions,
but thank you very much indeed for that very detailed work. Can
I also express my gratitude to you for coming on your own. It
always helps the Committee when witnesses are single-handed and
shows great confidence. It also means we can get through the questions
much more efficiently, so thank you very much indeed for that.
Can I begin by asking you to introduce yourself for the record
and, although this Committee knows, to explain the remit of energywatch
and who constitutes the organisation.
Mr Asher: Thank you. I am Allan
Asher, Chief Executive of energywatch. energywatch is the statutory
consumer watchdog for energy. We have three very simple tasks:
to try and promote efficient energy markets, responsible energy
markets and sustainable energy markets. Sadly, we have not succeeded
in any of those three goals yet. For this inquiry we have closely
interviewed 50 industry experts, that is, traders and large buyers
and sellers, but, most importantly, we have drawn on our records.
We have helped five million consumers since 2002 and we genuinely
believe we know what circumstances consumers face, how the market
works and, sadly, how it does not work.
Q176 Chairman: When you say consumers,
are you meaning just retail consumers in the home environment
or small businesses as well?
Mr Asher: energywatch's remit
is for all consumers. Most of our work is, of course, with domestic
consumers and we have a particular programme for the fuel-poor.
However, we find that micro-business and small business are also
in a very bad way. They do not have access to any of the protections
that domestic consumers have, and yet they do not have the buying
power or the ability to negotiate good deals like big business,
so often they are even worse off.
Chairman: Thank you. That is helpful.
There is one issue that Mr Oaten would just like to explore about
your remit.
Q177 Mr Oaten: There seems to be
a little bit of a gap in the regulation and support for consumers.
Many of us around this table represent large rural constituencies
where constituents are dependent on fuel oil, where they are dependent
on liquid petroleum gas, or Calor gas, and in some cases LPG prices
have gone up by 82% over a two-year period. What role do you have
in that area and, if you do not, do you think that somebody should
be stepping in to regulate this particular sector?
Mr Asher: Yes, I agree there is
a gap. The way that the law was written, our jurisdiction is where
there is gas conveyed by pipes or power conveyed by wires. So
for people off the gas network—and, sadly, there are several
million of those and they really face a tough time, especially
in rural areas or in the north of Scotland and things like that—we
help where we can. We were active witnesses at the Competition
Commission inquiry into LPG. Also, we think that, for sustainability
reasons, we have just got to find ways of being able to support
those combined heat and power installations and all those non-grid
applications. For us though it is a bit irrelevant as we are to
cease existing at the end of September. We can only hope that
the National Consumer Council, which will take over, has a wider
remit.
Q178 Mr Oaten: So you would welcome
bringing these into the family, if you like?
Mr Asher: Certainly. There are
consumers with problems with heat and warmth, and that is really
what we should be about.
Q179 Chairman: That would require
statutory change to effect that for the National Consumer Council.
Mr Asher: I do not think so, in
that, as an advocacy organisation, they have a remit at large.
I do not think it requires that. It just requires enough resources
so that they can do it.
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