Fuel Supply Transfers

HC Deb 17 July 2002 vol 389 cc347-8W

John Barrett

To ask the Secretary of State for Trade and Industry what sanctions exist for energy companies which carry out transfers of fuel supply without customers' consent. [688221

Mr. Wilson

The treatment of erroneous transfers is governed by the Erroneous Transfer Customer Charter, which was developed by the Office of Gas and Electricity Markets (OFGEM) and Energywatch. The charter, which is intended to improve co-operation between suppliers with a view to resolving problems quickly, with minimal involvement on the consumer's part, was agreed by the industry last year and came into force on 1 January 2002. OFGEM will review the industry's performance against the charter in October 2002, and has made clear that, if the industry's performance against the charter is inadequate, it will consider the modification of standard licence conditions or the introduction of guaranteed standards of performance, which carry an automatic right to compensation.

Where erroneous transfers arise from mis-selling, the mis-selling may be dealt with under the appropriate consumer legislation or under condition 48 of the gas and electricity supply licence—the marketing licence condition. OFGEM may take a wide range of action in respect of breaches of licence conditions, including levying financial penalties.