Vol. 440 No. 3
8 Mr. McGahon asked the Minister for Enterprise and Employment if he will ask the Competition Authority to conduct a review of the ESB appliances retail outlets with respect to their pricing and credit policies in the sale of domestic appliances; and whether they constitute unfair competition against private retailers.
As Minister Quinn said in his reply to a question on 9 February 1994, the measures already taken by the ESB to address this problem include a new invoicing system and confining the promotion of electrical appliance sales to three billing periods annually, which the Minister for Transport, Energy and Communications considers a reasonable balance between the needs of consumers and other applicance retailers.
While I do not intend to request the Competition Authority to investigate this matter I would remind the Deputy that the amendment to the Competition Act, 1991, which we will propose shortly, will empower the Competition Authority to carry out investigations on its own initiative and to act on complaints from the public. These enforcement powers will be in addition to existing provisions which enable any person or any group of people who feel aggrieved under the existing Competition Act to take a civil action in the courts.
I thank the Minister for his reply and acknowledge this matter was raised on a previous occasion. Is he aware there is a vast difference between ESB electrical outlets in Dublin and other areas, where there tends to be more competition? Many of the small retailers who sell electrical products in small rural towns find it difficult to run their business against this competition. Would the Minister agree there is a difference between urban and rural areas in this regard?
This is an ongoing issue. In 1989 the Director of Consumer Affairs investigated the matter and found the ESB was not acting unfairly. The Dirctor found that it was involved in retailing as a matter of public policy rather than competition. The Deputy will recall that in 1992 the Minister for Energy requested the ESB to cease using the billing system for retailing purposes. I would remind the Deputy there was upset in some quarters, namely the Society of St. Vincent de Paul, some trade unions and indeed, publicly which resulted in a decision being taken to request the ESB to initiate a new invoicing system. Two bills could be put in the one envelope but they had to be separate bills for the product and the ESB was confined to using the bills for three of the billing periods.
The Minister for Transport, Energy and Communications is of the view that is a reasonable balance. If the Dáil agrees on the legislation to amend the Competition Bill, members of the public who feel this issue should be addressed on a competition basis can do so directly. I do not propose to ask the Competition Authority to investigate the matter at this time.
Obviously our primary concern is to ensure that the consumer gets the best service, at the best rates and in a friendly manner. We also wish to ensure fair competition and full protection for the consumer. Has the Minister any indication of the level of complaints from the general public on this issue or is the substantial body of representations from the retailers?
Most of the representations appear to be from the retailers and the ESB. The groups involved, rather than the consumers, appear to be exercising their rights on the issue. There is no evidence of any accumulated complaints or requests from consumers on the issue but we will continue to monitor the situation.
