§ The Minister for Energy and Construction (Mr. Brian Wilson)We have published today our conclusions on the operation of the GB gas market and concerns, especially from industrial consumers, on a marked increase in gas prices which occurred in 2000. We have carefully considered all the responses to the consultation and have found that the fundamental reason for movements in gas prices has been the influence of trade with continental Europe through the Interconnector pipeline, essential for the UK's winter gas requirements and future security of supply, as we become net importers.
The consultation produced no evidence to suggest anti-competitive behaviour nor to justify a competition investigation by the Office of Fair Trading or the European Commission. The consultation was useful in eliciting views about the operation of gas markets.
We recognise the difficulties that industrial consumers experienced with the rise of gas prices in 2000. To address this we are continuing to press for liberalisation and competition in energy markets both here and on the continent, and to then ensure that the inherent benefits are passed on to both industrial and domestic consumers. The complexity of the gas market means that we must seek to introduce greater transparency for the consumer. To this end we will continue to work closely with Ofgem, Transco and representatives of gas consumers, shippers and producers to increase understanding and clarity for all market participants.
The published response includes a summary of responses to the consultation. Copies have been placed in the libraries of both Houses.