§ Mr. SalmondTo ask the Secretary of State for Trade and Industry if she will make a statement on the powers Ministers have with regards to securing the supply of energy. [72559]
§ Mr. WilsonResponsibility for energy security under the law is shared by my right hon. Friend the Secretary of State for Trade and Industry and Ofgem. My right hon. Friend is responsible for setting the overall regulatory framework for the supply of gas and electricity. A key part of that framework is set out in the Electricity Act 1989 and the Gas Act 1986. These provide that in carrying out their functions the Secretary of State and Ofgem shall have regard to the need to secure that all reasonable demands in Great Britain for electricity and (so far as it is economical to do so) for gas are met.
Under this legislation, the powers of the Secretary of State and Ofgem relating to security of supply are mainly exercised through their licensing functions. My right hon. Friend has laid down Standard Licence Conditions which apply to all classes of licensees. Power to modify these rests with Ofgem, with reference to the Competition Commission if a company and Ofgem cannot agree. My right hon. Friend has a power to veto agreed modifications. Enforcement of licence conditions is for Ofgem.
My right hon. Friend has statutory responsibility for regulation of the offshore and onshore oil and gas industries, including the authorisation of pipeline 1336W construction and settlement of disputes about access to pipelines. She also has general responsibility for gas regulation and for strategic international issues including European policy, and hence for security of supply issues falling within these areas. There are also provisions under HSE's Gas Safety (Management) Regulations 1996 and under the Electricity Supply Regulations 1988 which provide for maintaining security of supply.
The Electricity Act 1989 gives my right hon. Friend powers to require particular measures to be taken by licence holders in the event of an electricity supply emergency. The Government may also use the powers contained in the Energy Act 1976 and the more general powers in the Emergency Powers Act 1920, which is the responsibility of the Home Office.