§ Mr. David Mitchellasked the Secretary of State for Energy whether he is aware that the electricity boards now require small businesses when starting up to pay a deposit before they are prepared to supply electricity; and whether he will issue a general direction forbidding this practice.
§ Dr. John CunninghamElectricity boards are required by statute to provide a supply of electricity when it is requested and they are also permitted by statute to ask for a deposit as security for payment where they believe the circumstances justify this. I understand it has always been and continues to be their practice to consider each case on its merits when deciding whether or not to seek a deposit. The size of the business or the amount of consumption does not determine their decisions. Consumers from whom a6W deposit is requested have a statutory right to seek arbitration on the amount. Interest is paid on deposits, currently at the rate of 10 per cent. per annum.