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Proceeding contribution from Baroness Kramer (Liberal Democrat) in the House of Commons on Thursday, 5 July 2007. It occurred during Debate on bill on Consumers, Estate Agents and Redress Bill [Lords].


Consumers, Estate Agents and Redress Bill [Lords]

I shall close by asking the Minister to ensure that the Bill’s implementation is closely monitored. The Bill sets up a sequence of redress schemes, which, as the hon. Member for the Cotswold eloquently pointed out, are designed to deal with the problem after it has arisen. Consumers are unlikely to pursue a complaint to redress unless the process is easy, positive and offers encouragement. The Minister will have seen the energy supply ombudsman’s forms, which are not easy to complete with the detail necessary to pursue a complaint. We suspect that most redress schemes will refuse to provide a deadlock letter enabling consumers to pursue their complaint for at least three months—a long and delayed process. Ultimately, it is easier for people to drop out of the system. Ofgem is reviewing the work of the energy supply ombudsman, but a minimal number of complaints survive to the point of redress. We know that Energywatch is about to disappear, but, as the Minister will know, in the past six months it handled about 32,000 complaints; in the same period, the energy supply ombudsman handled 321. Scaling up now to deal with a greater number of complaints means that the process will have to be closely monitored. Strangely enough, even though Energywatch has no power to deliver compensation, the average compensation achieved by it was £125 per case. The ombudsman, who has all the power, delivered only £80, on average. If we can have assurances about monitoring and review, that will greatly aid my confidence and that of my colleagues in supporting the Bill. I thank you, Madam Deputy Speaker, for the opportunity.


Secondary information

Type
Proceeding contribution
Reference
462 c1161-2 
Session
2006-07
Chamber / Committee
House of Commons chamber
Subjects
Complaints Disclosure of information Consumers Commercial secrets Licensing Energy supply Estate agents Gas and Electricity Consumer Council Qualifications Protection Postal services National Consumer Council Standards Training Regulation Consumer Council for Postal Services
Legislation
Consumers, Estate Agents and Redress Bill (HL) 2006-07
Link
View this Proceeding contribution on www.publications.parliament.uk