§ Mrs. Iris RobinsonTo ask the Secretary of State for Trade and Industry what protection is available for people against utility company levies that are added to their bills because they choose not to pay by direct debit. [178668]
§ Mr. TimmsThe protection available to utility customers varies according to the industry concerned, each of which is subject to specific regulation. In respect of gas, electricity and telephone, levies are not applied to customers who choose to pay by standard credit,826W although direct debit customers ordinarily receive a discount because of the lower costs of administering their accounts. Gas and electricity prepayment meter customers will ordinarily pay a higher tariff than other customers because of the costs of the meters and the infrastructure that supports them, but some suppliers do not maintain differentials between their standard credit and prepayment tariffs. My right hon. Friend the Secretary of State for Environment, Food and Rural Affairs is responsible for matters concerning the water industry.
§ Mrs. Iris RobinsonTo ask the Secretary of State for Trade and Industry if she will make a statement on the practice of utility companies in imposing different levels of charges upon customers who pay for their services by direct debit and those who do not. [177659]
§ Mr. TimmsDirect debit is the most cost-efficient payment method for companies because, among other things, it guarantees payment and reduces invoicing costs. Utility companies therefore customarily offer a discount on their standard tariff for those paying by direct debit.