HC Deb 22 November 2000 vol 357 cc198-9W
Mr. Drew

To ask the Secretary of State for Trade and Industry (1) what plans he has to regulate cold calling by utilities, with specific reference to older residents; [139690]

(2) what safeguards exist for customers who have agreed to change utility companies as a result of a cold call. [139691]

Mrs. Liddell

[holding answer 21 November 2000]: The Consumer Protection (Cancellation of Contracts Away from Business Premises) Regulations 1987 give consumers a seven-day cooling off period when buying goods or services worth over £35 during an unsolicited home visit or telephone call. It is an offence not to tell consumers of these rights.

There are additional safeguards in respect of gas and electricity supply. In 1998, with the Government's encouragement, the Office of Gas and Electricity Markets (OFGEM) introduced a licence condition for gas and electricity suppliers governing sales and marketing practices. This includes rules on the proper selection and training of sales staff who are in direct contact with domestic customers, and on the auditing of sales activities. The condition was extended for a further two years in March 2000, and OFGEM is currently consulting on strengthening it. OFGEM also works closely with individual companies on an ongoing basis to resolve problems that lead to customer complaints. The new Gas and Electricity Consumer Council established under the Utilities Act 2000 has said it will also be a vigorous advocate of the consumer interest in this area.

Detailed regulation of the privatised utilities is a matter for the sectoral regulator. However, the Government are always concerned that consumers, particularly the vulnerable, should be protected against the distress and confusion that inappropriate selling techniques can cause.

This is reflected in the Utilities Act 2000 which gave OFGEM and the Gas and Electricity Consumer Council a specific responsibility to have regard to the interests of vulnerable individuals, including the disabled, the chronically sick, the elderly, those on low incomes and those in rural areas.