HC Deb 19 July 1976 vol 915 cc1264-6
7. Mr. Skeet

asked the Secretary of State for Energy whether he has yet reached a conclusion on whether to instruct the gas and electricity boards to discontinue the practice of disconnection for non-payment; and what plans he has to implement other recommendations contained in the Oakes Report.

19. Mr. Mike Thomas

asked the Secretary of State for Energy when he expects to announce the Government's proposals to implement the Oakes Report on fuel payments.

22. Mr. Frank Allaun

asked the Secretary of State for Energy whether he has yet reached a conclusion about instructing the electricity and gas boards to discontinue the practice of disconnection for non-payment; and what plans he has to implement other recommendations outlined in the Oakes Report.

The Under-Secretary of State for Energy (Mr. Gordon Oakes)

The report is still being considered and my right hon. Friend will make a statement as soon as possible.

Mr. Skeet

Is the hon. Gentleman aware that many traders do not have the powers that are available to the gas and electricity industries but that they collect their debts? Does he accept that these two industries are overloaded with bad debts? Will he consider the possibility of having special categories of exemption, such as old-age pensioners and single-parent families? Will the Secretary of State accelerate a decision on this matter as it is of importance to the industry as well as to the consumer? It is particularly important to people on lower earnings.

Mr. Oakes

As the hon. Gentleman and the House know, I have reported on this matter to my right hon. Friend. The industries have put their point of view, and I am hopeful that the Secretary of State will make a decision as soon as possible.

Mr. Thomas

Is my hon. Friend aware that, although there have been various reports of this kind, we have gone through a difficult winter for poorer people and we are now about to embark on another winter of disconnections and misery for many people if a decision is not made shortly? The Government must get on and make a decision. Is my hon. Friend determined to hear yet again the rearguard action of the industries to the sensible proposal that he is making?

Mr. Oakes

I have made my report to my right hon. Friend, and the industries are entitled to put forward their point of view on the report. I agree that there is an acute need for urgency in this matter. A decision must be taken before the autumn and winter months.

Mr. Peter Bottomley

Can there be any justification of the energy boards' claim that the cost of fuel will have to go up by 10 per cent. if the automatic disconnection policy is changed? Has the hon. Gentleman had any evidence from the electricity or gas boards as to the number of people who could equally well pay if there were a threat of being taken to court?

Mr. Oakes

The industries have put forward that point of view. However, there is some doubt as to how they arrive at the arithmetic of the figures.

Mr. Allaun

What is my hon. Friend's attitude towards providing pensioners living on their own with free gas and electricity, as urged by Jack Jones and others, especially as both industries are working at less than full capacity? If ICI can be granted a rebate of £91 million a year by the gas board on its gas bill, the boards should surely grant something to pensioners rather than apply disconnection.

Mr. Oakes

I do not want to go into the long-term contract question that my hon. Friend has raised. The issue of free supplies of electricity and gas were not in my report. Possibly that is a matter for decision for the Department of Health and Social Security rather than by my Department.