HC Deb 17 January 1977 vol 924 cc8-9
5. Mr. Madden

asked the Secretary of State for Energy if he will list the reconnection deposits and charges made by the electricity and gas industries to those disconnected for non-payment of accounts.

The Under-Secretary of State for Energy (Dr. John A. Cunningham)

I understand that charges for reconnection vary according to the amount of work involved. For electricity a typical charge would be £3 where there is access to the premises and no external work is needed. For gas a typical charge would be in the range £3 to £7. Deposits where required are fixed according to the customer's individual circumstances, such as his level of consumptiton.

Mr. Madden

Does my hon. Friend agree that his reply indicates that the problem is one of arbitrary decisions taken by the gas and electricity industries, which often place a burden on low-income families? Is he prepared to consider making these charges a matter of review and agreement by the Government and the appropriate Government Department? Also, what advice was given on these matters in the code of conduct relating to disconnections?

Dr. Cunningham

No, I do not agree that the charges are matters of arbitrary decision by the industries in so far as they are effected under the code of practice on payment of domestic electricity and gas bills. Deposits are required only for short-stay occupants or persistent bad payers. In the latter case, the industries must have a fall-back position to safeguard their interests and those of other consumers. The whole question of disconnections was the subject of a review by the Government, and the Government are keeping their options open. We will consider the matter again in the light of the working of the code of practice.

Mr. Rost

Is the Minister aware that many thousands of low-income families are suffering undue hardship by having their supplies cut off or threatened because the Government have not done what they should have done over the past year and permitted more incentives—as on the Continent—for thermal insulation and improved heating systems? This is particularly the case with families who are trapped in all-electrically-heated council-houses.

Dr. Cunningham

I do not accept that either. The Government have made £25 million available especially to help low-income families and families in receipt of supplementary benefit and family income supplement. This help applies in many cases to elderly people whose houses are heated solely by electricity.

Money is available to local authorities through the job creation programme for insulation. The Government have negotiated substantial discounts with the manufacturers of insulation materials. We are giving every encouragement to local authorities to go ahead and insulate, especially as we are aware that between 60 per cent. and 70 per cent. of local authority houses have no insulation. I reject what the hon. Gentleman says. We are pressing ahead as far as we can, but in the end it is for local authorities to take action.