HC Deb 09 May 1988 vol 133 cc4-5
6. Mr Thurnham

To ask the Secretary of State for Energy what recent representations he has received about statutory obligations and supply regulations in the electricity supply industry following privatisation; and if he will make a statement.

Mr. Parkinson

I have received many representations on electricity privatisation, including comments on the proposed revisions to the electricity supply regulations.

Mr. Thurnham

In looking ahead to 1992, can my right hon. Friend say whether reciprocal registration agreements will be used with our European partners, most of whom, I understand, require registration now?

Mr. Parkinson

This is strictly a matter for my right hon. Friend the Secretary of State for Trade and Industry, who is dealing with this aspect of 1992. We have a meeting arranged with the Electrical Contractors Association, and I shall he interested to hear the views of its members.

Mr. Cryer

Does the Secretary of State agree that privatisation and competition involve cost-cutting exercises to increase profits? That is the main motivation of running private concerns rather than services. What guarantee does he have that directors in the privatised sector will not be as incompetent and criminally irresponsible as the directors of Townsend Thoresen?

Mr. Parkinson

The hon. Gentleman is making the mistake of assuming that profits can come only from what he describes as cost cutting, which implies sacking employees and behaving anti-socially. Operating efficiently can provide a useful source of profits and a useful source of help for the customer, who enjoys a keener price.

Mr. Andy Stewart

When the supply regulations are introduced after privatisation, will British Coal be allowed to compete fairly and equally with foreign imports, which can be dumped here in the short term to decimate the British industry before prices are increased?

Mr. Parkinson

My hon. Friend knows that there is a huge market for coal that will exist way into the foreseeable future. Most of our electricity will come from coal. The Government have invested more than £9 billion in the past nine years to ensure that we have a modern, efficient British coal industry. Therefore, there is a market and the industry has been given the investment. If that is used properly, the British coal industry has nothing to fear.

Mr. Prescott

Will the Secretary of State confirm that his consultative document, in which he promised new rights for consumers, includes provision in the regulations for the duty to supply—which may be prosecuted for at the moment—to be prosecuted only through civil actions agreed by the director general of electricity supply? Will he also confirm that the duty to supply will now be reduced to supply on reasonable terms? Finally, will he confirm that the right to disconnect—which is qualified at the moment—will be unqualified? That is clearly a reduction of consumers' rights and in conflict with the Secretary of State's promise in his White Paper.

Mr. Parkinson

I do not know where the hon. Gentleman got those findings. No decisions have been taken on those matters. We are in the middle of a process of consultation about the possible supply regulations and no decisions of any kind have been taken. They will be taken after consultation.