§ Mr. Simon HughesTo ask the Secretary of State for Energy if he will make a statement on the potential benefits and disbenefits resulting from the introduction of least-cost planning to the electricity generating industry.
§ Mr. Baldry"Least-cost planning" can sometimes increase energy efficiency in highly regulated and vertically integrated energy monopolies. In competitive industries, such as that being established in electricity generation in England and Wales, it would not increase energy efficiency but would create unnecessary bureaucracy, thereby risking inappropriate market distortions and consequent inefficiency.