§ Mr. Bill WalkerTo ask the Secretary of State for Scotland when he will make available the regularity framework under which the electricity supply industry in Scotland will operate after privatisation.
§ Mr. LangI have today made copies of the draft model licence for the successor companies to the South of Scotland Electricity Board and the North of Scotland Hydro-Electric Board available to Members of the Standing Committee considering the Electricity Bill, and placed copies in the Library of both Houses accompanied by explanatory notes.
As vertically integrated utilities the Scottish companies will be licensed to generate, transmit and supply electricity. The licence for each company will be granted as a composite document containing the licences for each of these activities.
The licence contains conditions restricting the level of charges and providing for third parties to have access to the transmission and distribution systems of the licensee, conditions relating to technical and operating standards, arrangements for ensuring security of fuel supply, and consultation on employees' health and safety. It also contains conditions prohibiting cross-subsidy or discrimination and makes important provision for aspects of consumer relations and standards of service.
The licence as it will apply to the successor company to the North of Scotland Hydro-Electric Board contains a condition requiring the licensee to maintain common tariffs in his authorised supply area, pursuant to clause 3(2) of the Electricity Bill. The licensees will be required to provide information to the Director General of Electricity Supply and to pay fees to cover regulatory costs.