§ Mr. CaplinTo ask the President of the Board of Trade if she will establish a unified regulator for the electricity and gas industry with particular responsibility for monitoring cross-subsidy between the two markets. [43108]
§ Mrs. BeckettIn the Green Paper on utility regulation `A Fair Deal for Consumers', which I published on 25 March, there is a proposal that the electricity and gas regulators should be replaced as soon as possible with a single energy regulator, and OFFER and OFGAS should be merged to create a single regulatory office. The duties of the new energy regulator will need to acknowledge the convergence of the gas and electricity markets. It will also be necessary to ensure that the creation of a joint energy regulator is underpinned by the proper integration of the supporting regulatory regimes.
The Green Paper also proposes that, as an interim measure, steps should be taken to ensure collaboration on the regulatory issues raised by integrated energy markets, and strategic planning set in hand for the creation of the single regulatory office.
Procedures are now in hand to appoint a Director General of Gas Supply as from November 1998. It is expected that the successful candidate will also be appointed as Director General of Electricity Supply, at or soon after appointment as DGGS. Subject to Parliamentary approval of legislation, it is also expected that he or she would later be appointed as Energy Regulator for Great Britain.
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