§ Norman LambTo ask the Secretary of State for Trade and Industry (1) what plans he has to amend legislation to provide an incentive for(a) pipe laying and (b) gas supply companies to extend gas supplies to communities without a gas supply; [6255]
(2) what steps he proposes to take to extend gas supplies to communities, which have no supply; and if he will make a statement. [6256]
§ Mr. Wilson[holding answer 15 October 2001]The Utilities Act 2000 sought to increase competition in connections by removing the limits on gas transporters1160W operating in their limited licence areas, with a view to stimulating competition between transporters, promoting extension of the network and reducing connection costs. In August 2001, the Office of Gas and Electricity Markets (Ofgem) consulted on a proposal to amend the Gas Connections Regulations to allow for a recovery period of twenty years rather than five. This would be expected to reduce the incentive for householders to hold back on connecting to the gas supply, and therefore to increase initial take-up.
The Government's draft Fuel Poverty Strategy included a commitment to working with Ofgem to ensure that, wherever possible, the gas network provides the widest viable coverage and fullest viable capacity. A working group, whose membership includes representatives of Government, Ofgem, the industry and consumers, is taking this work forward with a view to producing an interim report this month. The Government will take a view on what action is appropriate once the group has reported.