Commentary on Sections Part 6: Consumer Protection and Miscellaneous Schedule 14: Consumer redress orders
575.This Schedule amends the Gas Act 1986 and the Electricity Act 1989 so as to provide the Authority with a power to make a “consumer redress order”. The Authority may make such an order if a regulated person such as an energy supplier breaches a relevant condition or requirement of its operating licence and that breach causes loss, damage or inconvenience to a consumer. Where it is appropriate to make a consumer redress order it might, for example, impose a requirement on the regulated person to pay compensation to the consumer for the loss or damage which the regulated person has caused to the consumer. The order may also impose such requirements as the Authority thinks is necessary to remedy the consequences of a contravention. Part 1 of this Schedule makes amendments to the Gas Act 1986 whilst Part 2 makes equivalent amendments to the Electricity Act 1989 so that a power to make a consumer redress order applies in the same way to breaches by gas companies or electricity companies. The following describes the effect of the amendments being made to the Gas Act 1986 but the description is equally applicable to the equivalent amendments made to the Electricity Act 1989 by Part 2 of this Schedule.