HC Deb 31 July 1997 vol 299 c448
18. Mr. Jenkin

To ask the President of the Board of Trade if she will make a statement on her policy with regard to further liberalisation of electricity markets. [10043]

Mr. Battle

The Government inherited an electricity programme that had been left in drift by the former Administration. A top priority was for us to sort out the programme and, within weeks, we have done that because full competition in the UK electricity market and completion of the single European market in electricity remain key priorities for the Government.

Mr. Jenkin

Is the Minister aware of the difficulties with the settlement system in 1994 when the 100 kW market was opened up to some 50,000 customers? Is he absolutely confident that, on 1 April 1998, when some 23 million customers will have access to the pool, the settlement system will operate effectively? What steps has he taken to ensure that that will be the case?

Mr. Battle

We were well aware of exactly what was happening because we were pointing it out to the previous Government when some 5,000 commercial bill payers did not get their bills on time. We told the Government that that would happen if they did not put proper systems in place.

I have made it clear that the necessary systems must be robust and delivered in a timely manner. I commissioned a report from the Director General of Electricity Supply on the status of the programme and on his proposals for the way forward. That report was published on 29 May, as I am sure the hon. Gentleman knows. I then discussed the director general's proposals with him, the chief executives of all the public electricity suppliers and the electricity pool on 12 June. It was agreed that the director general's report provided a sound basis on which to take forward the rest of the work to deliver that competition in 1998. We are monitoring it closely to ensure that we get it right.