Midlands Electricity

HC Deb 01 November 1995 vol 265 cc285-6

2. Mr. Robert Ainsworth

To ask the President of the Board of Trade what representations he has received in respect of consumers regarding the PowerGen bid for Midlands Electricity from the Midlands Electricity consumers committee. [38650]

The Parliamentary Under-Secretary of State for Trade and Industry (Mr. Jonathan Evans)

None.

Mr. Ainsworth

Is the Minister aware of the Midlands Electricity consumers committee chairman's concern that the proposal will not be in the interests of consumers? Is he aware that the centre for the study of regulated industries has shown that, while the cost of generating electricity since privatisation has fallen by 6.8 per cent., bills have fallen by only 1. 6 per cent.? The interests of consumers have certainly not been protected to date. Is it not about time the Minister started doing so? Will he refer the proposal to the Monopolies and Mergers Commission?

Mr. Evans

The interests of consumers have been served by the privatisation of the electricity industry in terms of the price to domestic and industrial consumers. I remind the hon. Gentleman of the structure that relates to these matters. It is a matter for the Director General of Fair Trading first to produce a report, which will then be passed to my right hon. Friend the President of the Board of Trade. At this point, any representations should be directed to the Office of Fair Trading and the director general so that they may be incorporated in the advice that he will tender in due course to my right hon. Friend. My advice to the hon. Gentleman is that he should ensure, if he has not already done so, that his representations are passed to that quarter.

Mr. Harvey

Without anticipating the Budget, can the Minister tell the House whether the Government are still opposed in principle to a windfall tax on the electricity companies?

Mr. Evans

Yes.

Mr. Harry Greenway

Does my hon. Friend recall that electricity prices rose by 2 per cent. every six weeks in the midlands and the rest of the country under the Labour Government? Labour has no right to lecture this or any other Government about electricity price rises.

Mr. Evans

My hon. Friend is absolutely right. The Opposition were then determined to ensure that the electricity industry remained a 100 per cent. state-owned monopoly. In those circumstances, the great benefits that are now pouring on consumers would not have been possible.