§ Mr. Gristasked the Secretary of State for Trade and Industry when the Monopolies and Mergers Commission report on the South Wales electricity board will be published.
§ Mr. Alexander FletcherThe report is published today. The commission was asked to report on the board's costs and efficiency. The commission commend and endorse many aspects of the board's performance but note that its controllable costs have risen faster than the rate of inflation over the past decade—a record which they did170W not find particularly impressive. The commission identifies a number of areas where changes could achieve efficiency gains and cost reductions.
The commission emphasise the importance of the board's controlling or reducing costs since electricity consumption in its area is forecast to increase only very slowly to the end of the decade. In all, the commission makes 46 detailed recommendations on a range of topics including the role of board members in determining strategy; management structures; management information systems and computerisation; the distribution system; investment; manpower and industrial relations, and tariffs. The commission also reviews the board's sales of appliances, electrical contracting and appliance repair work and recommend separate accounting for these activities.
The commission also suggests collaboration between the Electricity Council and the Electricity Consumers Council on guidelines on the information area boards should give to the local Consultative Council.
Finally the commission was asked to consider whether the board is pursuing a course of conduct which operates against the public interest. It concludes that it is not.
The board will be publishing its preliminary response to the commission's findings within three to four months in the light of which the Secretary of State for Energy will make a statement.