HC Deb 15 March 1995 vol 256 cc568-9W
Mr. Campbell-Savours

To ask the President of the Board of Trade at what time and on what day the proposals of Professor Littlechild to regulate energy prices further were first drawn to the attention of departmental officials or Ministers.

Mr. Eggar

[holding answer 13 March 1995]There has been a growing public debate in recent months about whether the price control for the regional electricity companies' distribution businesses struck a fair balance between the interests of consumers and shareholders. The Trafalgar House bid for Northern Electric which was announced on 19 December 1994 and Northern Electric's defence added substantially to the concerns being expressed. A wide range of options were canvassed during this debate. There are regular contacts between the Department and Offer on all regulatory matters. Offer kept the Department regularly informed on Professor Littlechild's thinking from 27 February. The decision to consider further a review of the proposals for the new price controls was taken by Professor Littlechild on 6 March 1995.

Mr. Campbell-Savours

To ask the President of the Board of Trade at what time and on what day departmental officials or Ministers first saw either the statement or a synopsis of the statement made by Professor Littlechild on the question of the further regulation of electricity prices.

Mr. Eggar

[holding answer 13 March 1995]At circa 16.45 on Monday 6 March, my officials first saw a draft of the statement Professor Littlechild planned to make the following day about the price controls on the distribution businesses of the regional electricity companies.

Mr. Harvey

To ask the President of the Board of Trade what discussions his Department had with the Director General of Electricity Supply prior to his announcement about prices of electricity.

Mr. Eggar

[holding answer 13 March 1995]There has been a growing public debate in recent months about whether the price control for the regional electricity companies' distribution businesses struck a fair balance between the interests of consumers and shareholders. The Trafalgar House bid for Northern Electric which was announced on 19 December 1994 and Northern Electric's defence added substantially to the concerns being expressed. A wide range of options were canvassed during this debate. Offer kept the Department regularly informed on the way Professor Littlechild's thinking was developing throughout the period from 27 February 1995 until his announcement on 7 March.