HC Deb 08 December 1964 vol 703 cc1308-10
17. Sir J. Eden

asked the Minister of Power if he will now give a general direction to area boards to use their powers under Section 29 of the Electricity Act, 1957, to control the price at which electricity supplied by them is resold through privately-operated meters.

18. Mr. Bishop

asked the Minister of Power if he is aware that some tenants, sub-tenants and guests are being forced to pay high prices for metered electricity; and if he will issue a general direction to boards to take steps, under Section 29 of the Electricity Act, 1957, to ensure that prices charged are reasonable.

Mr. John Morris

I am aware of a number of cases where there has been overcharging for electricity re-sold through privately-owned meters. The Chairman of the Electricity Council, in a letter to the former Minister which was reproduced in the OFFICIAL REPORT for 13th February this year, has explained why the electricity boards have not so far used their powers under Section 29. My right hon. Friend is examining with the Electricity Council how to prevent these abuses.

Sir J. Eden

Can the Minister say how widespread this practice is, and what information his Department has received? Does not he agree that Section 29 makes provision for every conceivable variation in circumstance of resale, and in those circumstances is it not desirable that the boards should fix a maximum resale price?

Mr. Morris

A number of cases has been brought to our attention. I should prefer not to go into detail as to the possible ways of meeting the difficulty until my right hon. Friend has had an opportunity of discussing this matter with the Electricity Council. He will certainly bear in mind any suggestions that are made in this House, and any complaints that reach him.

Mr. Bishop

Is my hon. Friend aware that the freedom to make this excessive charge for metered electricity also enables landlords to make a substantial increase in their rent incomes, and that this helps to violate any controls we have upon rents? Will he therefore emphasise the urgency of the matter with his friends in the electricity boards?

Mr. Morris

I appreciate to the full the point that has been made. I am sure that my hon. Friend will be aware that many practical difficulties arise from the fact that tariff structures and amounts used by the consumer vary, and also the first block of units is priced differently from later blocks. Difficulties also arise from the fact that although meters which are the property of the electricity boards have to be certified, those which are the property of the landlords—as they frequently are—do not have to be certified. These practical difficulties exist, but my right hon. Friend is consulting the Electricity Council as to the best means of meeting what is undoubtedly an important problem.

Mr. Peter Walker

Is the Minister aware this is one of the worst rackets of irresponsible landlords, and is very widespread? Could not the problem be tackled by making it illegal for anybody other than an electricity board to retail electricity at a profit?

Mr. Morris

The hon. Member knows a great deal about irresponsible landlords. [Interruption.] I am not referring to the hon. Member personally—but the party opposite were in power for 13 years, and landlords have from time to time taken unfair advantage of their tenants. I am sure that the hon. Gentleman will agree that if we are to do justice in this case we must find the most practical solution.