Press Release
11th November 2003
McNeil
Calls for “Dummy Warrant” Probe
MSP
for Greenock and Inverclyde, Duncan McNeil, is calling for an industry probe
into allegations that power company representatives are using so-called “dummy
warrants” to fraudulently gain access to customers’ properties and cut off
their electricity.
The
allegations come as ScottishPower, which makes a £2.1 million profit every day,
is accused by industry watchdog, Energywatch Scotland, of taking customers
“for a ride” and in the wake of the recent mis-selling scandals, on which Mr
McNeil called a parliamentary debate last November.
Mr
McNeil says it is therefore “vital that these latest allegations are
thoroughly investigated if the industry is to regain the trust of consumers.”
He has handed details of the allegations over to industry regulator, ofgem, requesting that the extent to which the practice is employed throughout the industry is fully investigated.
There
are also questions over whether such tactics would be in breach of a power
company’s licence conditions and Mr McNeil is also seeking clarification on
this point.
Speaking
today, Mr McNeil, said:
“Of
course everyone should pay their bills. But
there are clearly defined legal means of pursuing debts which are owed – and
using a dummy warrant to force your way into someone’s house is certainly not
one of them.
“I
have therefore made representations to ofgem, asking that they thoroughly
investigate these allegations and the extent to which such practices are
employed in the industry. I also
want to know if behaviour like this would breach a power company’s licence
conditions.
“I
have also written to the Lord Advocate, Colin Boyd, asking that he clarify
whether such behaviour would constitute a criminal offence.”
He
concluded:
“Opening
up the utility market to competition does give us a chance to cut our household
bills. But if we don’t trust the
industry, we are less likely to take advantage of the savings on offer by moving
to the supplier which offers us the best deal.”
The
allegations surfaced when a Justice of the Peace heard an application from
ScottishPower for warrants to enter the premises of customers for the purpose of
disconnecting the electricity supply. In
the accompanying documents, there were several references to customers in
arrears being visited with a “dummy warrant” prior to ScottishPower applying
for a real warrant in the courts.
Earlier
this month, industry watchdog Energywatch Scotland urged ScottishPower customers
to consider switching supplier after the company announced its half-yearly
underlying profits jump by 17% to £393 million.
ScottishPower, they said, was “taking advantage” of customer loyalty
and increasing the basic cost of electricity.
ENDS
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