Regulation of Property Agents

Alison Thewliss Excerpts

1st reading: House of Commons
Wednesday 18th October 2017 Commons Chamber

[Alok Sharma]

My right hon. Friend is right. Of course competition is important, but we also need to ensure that there is the appropriate regulation in place to give fairness in the system for those who are renting privately. That is precisely what we are doing with a raft of measures, which I have already outlined, and this call for evidence.

[Alison Thewliss (Glasgow Central) (SNP)]

The statement represents just another consultation on a proposal. People out there in the real world want action, because the problems in the housing sector are well known.

The Scottish Government legislated on this matter back in 2011, through the Property Factors (Scotland) Act 2011. The primary objective was to create a statutory framework to protect homeowners who used factoring services by providing minimum standards for property factors. This came into force in October 2012 and it applies to all residential property and land managers whether they are private sector businesses, local authorities or housing associations. A compulsory register of factors has been operating and registration helps to ensure that property factors are aware of the standards and that they comply with them. It is a criminal offence to operate as a property factor in Scotland if unregistered. Will the UK Government put that into legislation and follow that example?

A code of conduct sets out minimum standards of practice with which all registered property factors are statutorily obliged to comply. There is a route for redress to the Homeowner Housing Panel, which is an independent judicial body separate from Scottish Ministers and from local authorities. Homeowners can apply to the panel if they believe that their property factor has failed to comply with the code of conduct or otherwise failed to carry out their factoring duties.

That is another example of the Scottish National party leading the way for a progressive housing policy in Scotland and of how we are getting on with the day job while the Tories are off refereeing football matches.

Given that the UK Government are six years behind Scotland, will the Minister meet the Scottish Housing Minister, Kevin Stewart, to discuss what is already in operation in Scotland, what is working well, what we are doing and what the UK Government can learn from to represent homeowners across the UK?

Smart Meters Bill

Alison Thewliss Excerpts

3rd reading: House of Commons & Report stage: House of Commons
Monday 5th February 2018 Commons Chamber

[Patricia Gibson]

I thank the Minister for his response, but the information that I am imparting tonight comes from the sample of letters that the Minister sent to me, so some energy companies are clearly using this sharp practice. I would not say that all of them are, but some are certainly not saying that smart meters are optional, instead using language such as “You are eligible” or “You have been specially selected,” which is unacceptable.

[Alison Thewliss (Glasgow Central) (SNP)]

Does my hon. Friend share my worry that vulnerable citizens may fall foul of such things? For example, my constituent Mr Vezza ended up with no power for three years when his electricity was cut off due to a misunderstanding because he did not want a smart meter installed. He was so fearful about getting in touch with the energy company that he has been living without electricity for three years.

[Patricia Gibson]

I am sure that the Minister listened carefully to that intervention, because that is an example of the kind of extreme situation that some vulnerable consumers can find themselves in. The Minister will be keen to investigate such things, because it is simply unacceptable that vulnerable consumers can be left in such dire circumstances.

I have real concerns about the mythology being sold to consumers that smart meters are free. That needs to be addressed, because they are not free. We all pay for them through our energy bills. Why has that not been communicated to the consumer? The Minister and I do not see eye to eye on this, but if there is no intention to mislead, why is the consumer not being told that smart meters are not free—in the sense that a normal person would understand the term? Free means that it costs nothing. Smart meters are being paid for by all of us through our bills. As I said on Report, the cost of smart meters is £11 billion and rising. Smart Energy GB has referred to a Government cost-benefit analysis, but I am particularly worried about the figure. I will not be the only person in the House to be closely monitoring it, because I fear that it may rise, and that goes to the heart of consumer confidence. If there is no intention to mislead, what is the harm in energy companies clearly communicating with consumers about the costs that will be incurred when they get a smart meter? I would be interested in the Minister’s reflections on that.

Some of the letters from energy companies that I have seen about deemed appointment are pushy. One particular company sent a letter to consumers stating that smart meters are flawed and will not work if they switch supplier, meaning that consumers should not switch after receiving a smart meter. That is what I call the cart pulling the horse. What does the Minister think of that practice? Ofgem talks about the deemed appointment system being acceptable, but I do not agree. Ofgem states that suppliers must ensure that they are compliant with their wider regulatory and other legal obligations and that suppliers should monitor consumer experiences. I wonder, then, what Ofgem makes of letters telling people that it is not advisable to change supplier once a smart meter has been installed because it will not work.

The Minister is well aware of my concerns and of the fact that many people are extremely suspicious about smart meters, not because they do not want to have greater control over the energy they use, not because they do not want to know which appliances are consuming high levels of power, not because they want to put estimated bills behind them, and not because they do not want to see the energy they are using in real time. People are suspicious because of the hard sell and the misinformation telling them they do not have a choice when they know that they do. Reports of target-driven, sales-hungry cold callers will do nothing to dispel that suspicion; it will only increase it.

I will end where I began. Despite everything that I have said, there are benefits to having a smart meter. However, as I have been saying for a long time, the Government and the energy companies need to ensure that consumers are at the heart of the process. Consumers will get on board by having access to correct and accurate information. Misleading information will only further alienate the consumers who could potentially benefit most from smart meters. That cannot be good. Energy efficiency is extremely important, and never more so than in households that are struggling to make ends meet, in which fuel poverty remains at 78%. Smart meters can help people to take measures that may help them and their household to have greater control over energy consumption. That is why we must get this right, and we must take consumers with us. I fear that we have a long way to go, given some of the concerns I have raised.

I urge the Minister to reflect further on the very real concerns I have raised—from my past experience, I know he will—and to do all he can to address them.

Question put and agreed to.

Bill accordingly read the Third time and passed.