| We contected Ofgem, Energy-watch and Caravan Club for their views. |
We asked Colin Atkins, consumer protection policy manager of Ofgem, about the new legislation.
Why the change?
It's because of changes brought about by the Utilities Act 2000 and because Ofgem wants to align the arrangements in electricity, with those in gas.
How is it different?
Under the old system, someone staying on a caravan site had no right to find out how the cost of electricity was calculated. Now, with MRP (maximum resale price), if a customer asks about the bill, a park owner has to be able to explain it or face penalties. The objective is that the cost benefits [of buying cheaper electricity] are passed on to the customers. Before this, a caravan site owner could have made a profit [on the electricity].
Without metering, isn't MRP going to be difficult for park owners to operate?
I suspect the majority of park operators will decide to charge an all-inclusive fee to keep administration to a minimum. If I were in a site owner's shoes I could
understand why he or she would do that.
What difference does an all-inclusive fee make?
Ofgem has agreed that where an all-inclusive fee for a pitch is charged – say, £10 – the MRP does not apply. But if the charge were £8 for the pitch and £2 for the electricity, then a park owner has a contract to sell
electricity, and then MRP applies.
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Brian Savage, director of membership services, puts The Caravan Club's side of the story:
The Caravan Club does have (and always has had) a system in place for those who do not wish to pay for electricity. On ten of our sites this year we have Economy pitches and, subject to availability, caravanners can book such a pitch if they do not wish to pay for what we believe is a modest all-in charge for a pitch with the convenience of an electrical hook-up. Our research shows that sites with only a few hook-ups were less popular with members.
The Caravan Club lobbied Ofgem hard when the
proposals were first aired, together with other clubs and organisations. Ofgem seemed completely unmoved by these representations. Even a letter from the Prime Minister in July last year showed that he agreed that site operators would need to recover the infrastructure cost, but he thought it 'reasonable that these costs should be contained within pitch fees'.
We would not presume to comment on how other organisations interpret the regulations but the matter can only be finally resolved by a court case which could have financially ruinous consequences if you were shown to have made an erroneous interpretation.
You suggest that The Caravan Club has been 'getting it in the neck' over the price rises. Although it is true we have had some complaints, the numbers are tiny in comparison to our membership. Although some prices have gone up, some have decreased, especially in the winter months. We have also made banding changes on sites – many where a major investment has taken place.
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The watchdog responds…
We asked the
consumer watchdog Energywatch if it was aware of
the increased
pitch-fees situation. When it looked into it, it was surprised by the results.
"We have received a number of
complaints and the nature of them is concerning," a spokeswoman
told us. Some motorcaravanners, she said, were being asked to pay for 'maintenance' charges although
no work had been carried out. Others complained that they were being asked to pay big
up-front charges for electricity supply.
Another concern she told us of
was that site
owners may not always be sharing electricity standing costs equally between all pitches, as the new
regulations require. She continued:
"We can see how these issues might
escalate, so we will be monitoring the situation, and will consider writing to the regulator."
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| • If you have a complaint
about overcharging, contact Energywatch:
tel 08459 060708; email Click here; or visit one of its eight regional offices shown on the website: Click here |
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