Regional Electricity Companies (Hansard, 20 April 1994)

§ Mr. Gunnell
To ask the President of the Board of Trade what advice he has given Professor Littlechild concerning the potential subsidisation of the retail activities of regional electricity companies through their electricity supply functions.

§ Mr. Eggar
This is a matter for the Director General of Electricity Supply. It is a condition of regional electricity companies' licences that they may not cross-subsidise between their separate businesses.

§ Mr. Gunnell
To ask the President of the Board of Trade how many complaints have been received by his Department from customers of regional electricity companies who believe that through the price of electricity they subsidise the retail activities of those companies.

§ Mr. Eggar
Over the last financial year, 1993–94, the Department of Trade and Industry has received no complaints from consumers on this matter.

§ Mr. Gunnell
To ask the President of the Board of Trade what information is collected by 0141-.ER concerning the retail activities of regional electricity companies.

§ Mr. Eggar
The Director General of Electricity Supply has no power to intervene in the running of the regional electricity companies' retail businesses. A condition in their licences ensures that the RECs may not cross-subsidise between their separate businesses, and the Director General has a duty to collect information to ensure that this is the case.

§ Mr. Hain
To ask the President of the Board of Trade what was the total amount received from the flotation of the regional electricity companies; and what is their total current value.

§ Mr. Eggar
Proceeds from the sale of shares in the RECs was £5,040 million. In addition the companies were floated with a debt to the Government of £2,815 million. 523W Some of this debt has already been paid back to the Treasury and some has yet to be redeemed. Total proceeds of the sale, therefore, will amount to £7,855 million.
As with most other public limited companies the current values of the regional electricity companies are publicly quoted and vary on a day to day basis.
Figures are given to the nearest million pounds.