§ Mr. Harry GreenwayTo ask the Secretary of State for Energy what is his estimate of the amount of electricity and gas saved since privatisation; and if he will make a statement.
§ Mr. Heathcoat-AmoryIn the electricity industry, competition has created an incentive on generators to reduce their fuel costs and an incentive on customers to manage their demand. As a result, the National Grid Company has noted evidence that high peak demands are now being managed more effectively, and older, inefficient plant is being closed down.
The Government are taking steps in the Utilities Bill to open up the gas market to wider competition, which will encourage a further focusing on costs by supplier and consumer as they evaluate the new options open to them.
British Gas and the regional electricity companies have also introduced initiatives to encourage their customers to use energy more efficiently, such as advisory services, Codes of Practice, competitions for industrial and commercial consumers, and appliance labelling. In addition, the Government have welcomed OFGAS' intention to incorporate into the gas tariff an "E factor" which would allow British Gas to pass on costs of energy efficiency programmes to consumers, and also the consultation document from OFFER on energy efficiency in the electricity industry.