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Mr. Nick Harvey (North Devon): Will the Minister give way?
Mr. Page: I do not mind briefly giving way, but if I cannot finish my speech it will be on the hon. Gentleman's head.
Mr. Harvey: The Minister is referring to overall reductions in transmissions. He said that other commodities show a price differential between regions, as though that were an act of God over which there was no control. Does he accept that, because the transmission part of the electricity industry remains a monopoly, it is a matter of policy whether there is economic costing, differentiating by region, or whether the costs are shared equally, as they have been until now? That is a matter of policy that might be controlled.
Mr. Page: I understand what the hon. Gentleman is saying, but as I said at the outset, the director general has been given specific tasks to achieve and--in being given those tasks--he has also been given a certain independence. If someone is given independence, he or she is expected to exercise it. Therefore the arguments to the director general have to be advanced; much of what I have said tonight shows that so much of the decision making will be in the director general's hands.
In November, the DGES began to consider the revised transmission price control to apply from 1 April 1997. He issued a consultation paper and asked for comments by the end of January. I understand that the DGES hopes to announce the revised control later this year and that it will take effect from 1 April 1997. That is a matter for the DGES. An important aspect of the regulatory system--introduced at the time of privatisation--is that the DGES is independent. His statutory duties include protecting the interests of the customer and promoting efficiency and economy on the part of the electricity licensees.
The hon. Gentleman has already expressed his concerns fairly forcefully, and I am sure that he will state them in writing to the DGES. I shall draw the contents of the debate to the attention of the DGES and flag up the hon. Gentleman's concerns. My hon. Friend the Member for South-East Cornwall (Mr. Hicks) has also made his views known to me. I advise the hon. Member for North Cornwall to lobby the director general enthusiastically so that he may take into account those views when he conducts the review of electricity transmission charges.
Question put and agreed to. Adjourned accordingly at fourteen minutes to Eleven o'clock.
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