Electricity (Hansard, 26 May 1999)

§ Mr. Boswell
To ask the Secretary of State for Trade and Industry if he will make a statement on(a) the difficulties in the process of introducing full competition in the domestic electricity market two years ago, (b) the undertakings he gave on the timetable for market opening and (c) the actions he took to accelerate the process of market opening.[85609]

§ Mr. Battle
On coming to office, it was clear that the Government would have to give a strong lead to this work in order to see it successfully completed. I commissioned a report from the then DGES on the status of the programme soon after taking office. That report and one from his programme manager was published on 29 May 1997 and provided a sound way forward upon which the industry was prepared to commit to delivery.
Among the difficulties which have been faced have been the sheer size of the task and the level of technical complexity involved. The task of putting in place the vital IT infrastructure which is required to make the competition process work was one of the largest and most difficult in the world. I have worked hard to ensure that competition was introduced in a sensible, systematic way which ensured that customers were paramount and have conducted a series of meetings with the companies, the Regulator, the Electricity Pool and the programme managers to ensure that any difficulties were ironed out.
It was intended by the previous Government that supply competition would be introduced from April 1998. However, a realistic programme of work had not been put in place to support delivery by that date. Despite the efforts of the industry during 1998, the April date proved unachievable with fully tested systems. At a meeting I held on 22 January 1998 with the DGES, representatives from the electricity industry agreed to accept a target of rolling out competition between September 1998 and June 1999. The first areas to open to full competition did so on 14 September last year. Competition was introduced in each PES area in three planned stages over six months. A comprehensive testing programme was put in place to establish whether systems could interact effectively. The market was declared fully open on 24 May, a month ahead of schedule, by the DGES. The DGES will be monitoring for some time to come to ensure that the mechanics supporting the change of supplier process are working effectively and that the companies adopt a reasonable approach to doorstep selling. Consumers across the country should now benefit from lower prices and a better level of service.

§ Mr. Boswell
To ask the Secretary of State for Trade and Industry if he will list(a) the decisions announced in section 36 and section 14 consents for gas-fired electricity power plants during 1999 and (b) the factors determining whether such applications were approved or refused. [85610]
198W

§ Mr. Battle
As promised in the Energy Sources White Paper, all decisions have been duly reported to Parliament. Members can also consult the actual decision letters, copies of which have also been placed in the Library of the House.

§ Miss McIntosh
To ask the Secretary of State for Trade and Industry what plans he has to review the Electricity Act 1989 with regard to access for way leaves and compensation to be paid. [85546]

§ Mr. Battle
My right hon. Friend has no plans to review the wayleave provisions of the Electricity Act 1989.