HC Deb 22 July 1974 vol 877 cc1032-3
20. Mr. MacFarquhar

asked the Secretary of State for Energy if he will issue a general direction to electricity boards to cease the practice of demanding security deposits from their customers.

Mr. Eadie

No, Sir. The boards have a statutory right to demand security.

Mr. MacFarquhar

Is my right hon. Friend aware that his answer will cause considerable concern to my constituents, some of whom face demands for deposits ranging from £15 to £30, or about one-third of the estimated consumption of electricity, and that the manner in which the system is operated by the East Midlands Electricity Board means that if a customer is articulate, stubborn and preferably has a bank account, the demand for a deposit will be waived, but that poorer people who have every intention of paying their electricity bills but cannot raise a deposit are precisely those from whom the deposit is demanded? Will my hon. Friend assure me that he will investigate the criteria used by the East Midlands Electricity Board in assessing the need for a deposit and any cases where hardship is caused by this system?

Mr. Eadie

It is a matter for the board's own commercial judgment as to how it should operate in accordance with its statutory powers. The board works in conjunction with the related consultative councils. If my hon. Friend has any particular cases which he wishes to draw to my attention, I shall be happy to look into them.

Mr. Woodhouse

if the hon. Gentleman will not accept the suggestion made by his hon. Friend the Member for Belper (Mr. MacFarquhar), will he at least insist that this practice should not be carried on on a discriminatory basis? Will he give a direction that security deposits, if demanded from anybody, should be demanded from all new customers and not merely from those who are likely to find it most difficult to pay them?

Mr. Eadie

As I explained to my hon. Friend, we have no statutory power to do what the hon. Gentleman is suggesting. I have said that there are consultative councils that work in conjunction with the boards in the areas. As I said to my hon. Friend also, if the hon. Gentleman has any particular cases that he wants to draw to my attention, I shall be delighted to receive details.