§ Mr. GibbTo ask the Secretary of State for Trade and Industry if the Government will continue to set price expectations in the competitive electricity markets once the new electricity trading arrangements have been introduced. [146743]
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§ Mr. HainThe increased competition as a result of the impending replacement of the electricity pool with the new electricity trading arrangement should put significant downward pressure on electricity prices. However, price levels will be determined solely by the markets.
§ Mr. GibbTo ask the Secretary of State for Trade and Industry what assessment he plans to make of the implications of the electricity crisis in California for UK energy policy. [146950]
§ Mr. HainThe underlying cause of the problems in the Californian electricity market appears to be a shortage of generation and transmission capacity. This is not the case in the England and Wales market which currently has a 20 per cent. surplus. In the context of our intention to reform the England and Wales wholesale electricity market we have previously studied the electricity market in California and continue to monitor the situation there closely.