§ 17. Mr. Richard Page (South-West Hertfordshire)What representations he has received on the operation of the pool pricing system for electricity. [77051]
§ The Minister for Energy and Industry (Mr. John Battle)I have received a wide range of representations. There is now a broadly held view that the electricity pool—the wholesale pricing system—is in need of reform. I argued that it was a flawed market when we were in opposition and we have already announced a full programme to implement the reforms.
§ Mr. PageI thank the Minister for his reply. Does he agree that, at the start, the pool process of pricing was a useful aid to privatisation, but that, as he has admitted and we now agree, it is time we moved on, especially to help large energy users who are currently disadvantaged because they are unable to take advantage of installing a gas generator for electricity due to the moratorium, and because they are hit by the high prices of the pool, which are sometimes 25 per cent. higher than those charged to the continental opposition? When does the Minister expect the outcome of the review to be announced, and when can we expect to see any changes?
§ Mr. BattleThe pool reform is under way, governed by the regulator, and it should bring price reductions of about 10 per cent. I find it slightly surprising that the hon. Gentleman should say that I have admitted that the system needs reforming, given that he was a member of the Government—a Minister at the very Department—who introduced the system, despite our arguing at the time that it was flawed. Such comments are rich coming from him now, although I am glad that he realises that the system needs to be changed.
I know that the pool is complicated. I often say that it is rather like the Schleswig-Holstein question, in that only three people ever understood it: one is mad, one is dead and the one who invented it has sadly forgotten why. I leave it to the House to decide into which category the hon. Gentleman falls.