HC Deb 03 July 1997 vol 297 cc404-5
7. Mr. Bernard Jenkin

To ask the President of the Board of Trade what discussions she has had with utility regulators concerning the utilities' investment programmes. [5210]

Mr. Nigel Griffiths

Ministers have regular contacts with the utility regulators. The current review of utility regulation will cover a number of issues, including shortfalls in agreed investment plans.

Mr. Jenkin

Which of the utility regulators agreed with the Government that the windfall profits tax would not damage investment?

Mr. Griffiths

The Chancellor and my hon. Friend the Minister for Science, Energy and Industry have had a number of discussions with the regulators. The windfall tax should have no impact at all on prices, investment, quality of service to customers, or employment. I shall send the hon. Gentleman a list of the utility regulators, since he seems not to have one.

Mr. Sheerman

Will my hon. Friend look carefully at the behaviour of some of the regional electricity companies—not just at their investment programmes but at their general behaviour in the regions? We have been used to good utilities supporting a range of investment in small businesses and much else in the community. I draw my hon. Friend's attention to the remarks of Mr. Klappa of South Western Electricity, which I thought were totally out of order.

Mr. Griffiths

My right hon. Friend the Secretary of State announced on Monday a review of utility regulation with a view to identifying best practice. That was greeted with the headline, "Beckett Backs Consumers".

Mr. Breed

Bearing in mind that the regional electricity companies are now selling gas, and that the gas companies, I suspect, will wish to sell electricity, has the Minister any plans to create an energy regulator instead of the two current regulators?

Mr. Griffiths

No options have been ruled out.