SUMMARY OF RECOMMENDATIONS
1. We recommend that the
Director General should propose higher limits for cost recovery
only if convincing evidence is provided that higher costs have
been incurred as a direct consequence of the development and operation
of competition services, and that such costs are reasonable. (Para
Error! Reference source not found.)
2. We recommend that the
Director General oblige all suppliers to ensure that prepayment
meter surcharges are no higher than can be justified by the greater
costs of supply to prepayment customers. We further recommend
that he consider the need for specific and continuing price regulation
for prepayment meter tariffs. (Para Error! Reference source not found.)
3. In 1995, we said that
we wished to see competition extended in the electricity supply
industry "provided that it can be achieved at reasonable
cost in relation to the benefits". This remains our recommendation.
(Para Error! Reference source not found.)
4. We recommend that the
Government commission and publish an independent cost-benefit
analysis of liberalisation, including a breakdown of the costs
and benefits for different types of consumer, especially low-income
consumers, in different regions. This must now be treated as
a matter of urgency. (Para Error! Reference source not found.)
5. We recommend that the
Director General continue to do all in his power to lead and co-ordinate
the liberalisation and re-affirm his statement of August 1995
that OFFER will take a pro-active role. (Para Error! Reference source not found.)
6. We recommend that the
Director General conduct urgently a consultation exercise with
the industry and consumer groups on the Pool's profiling proposals
to ensure that all the potential consequences of profiling have
been identified and accounted for; and that he publish his findings.
(Para Error! Reference source not found.)
7. We recommend that the
Director General proceed as fast as practicable to implement a
licence condition enabling him to impose the CIDA's decisions.
(Para 54)
8. We recommend that the
CIDA develop system specifications necessary to facilitate successful
systems integration as a matter of urgency and that the whole
industry agree speedily to implement its proposals. We further
recommend that new system specifications should be limited to
those essential for successful delivery of systems in April 1998.
(Para Error! Reference source not found.)
9. We recommend that the
CIDA immediately seek to establish how many PESs are unlikely
to meet even the latest entry deadline for end-to-end testing
and draw up contingency plans. We further recommend that OFFER
consider the imposition of financial penalties on those PESs who
do not meet the deadline for end-to-end testing. (Para Error! Reference source not found.)
10. We recommend that the
Director General establish and publish benchmarks of performance
for each phase of the controlled market start-up. (Para Error! Reference source not found.)
11. We urge PESs, in the
absence of a voluntary agreement, to accept proposed licence condition
7D. (Para Error! Reference source not found.)
12. We recommend that the
Director General seek agreement on licence conditions regarding
customer protection with some urgency. (Para 64)
13. We recommend that the
Director General should proceed with the establishment of price
controls on consumption between 8,000 and 20,000 kWh per annum
for the period immediately following 1st April 1998 for a minimum
of two years. (Para 66)
14. We recommend that the
Director General give further consideration to the need to restrain
prices for contract customers who have the same consumption levels
as those on protected tariffs. (Para Error! Reference source not found.)
15. We recommend that the
Director General, in determining the level of price restraints,
seeks to strike an appropriate balance between the need to protect
consumers and the need to provide adequate incentives to new entrants.
(Para Error! Reference source not found.)
16. We recommend that the
Director General ask the Office of Fair Trading, in consultation
with the Electricity Association, to consider ways in which sanctions
could be imposed upon those suppliers who breach the Code of Practice
on Marketing - whether full members of the Electricity Association
or not. (Para Error! Reference source not found.)
17. We recommend that the
Director General amend the Competitive Supply Code so that the
provision relating to persons entering customers' premises include
consideration of criminal records. (Para Error! Reference source not found.)
18. We recommend that the
Director General does not continue the Standards of Performance
levy beyond 1998. We further recommend, as we have done before,
that the Government accept responsibility for determining and
imposing any levies on consumers that may be necessary to fund
energy efficiency measures. (Para Error! Reference source not found.)
19. We reiterate our previous
recommendation that the Government consider ways in which suppliers
could be encouraged to offer energy efficiency services if these
do not emerge quickly in the liberalised market. (Para Error! Reference source not found.)
20. We recommend that the
Director General should impose non-discrimination licence obligations
on first and second tier suppliers as currently set out in the
draft licences. (Para Error! Reference source not found.)
21. We recommend that the
Director General regularly review the non-discrimination licence
conditions of all suppliers as competition in supply in the under
100 kW market develops. (Para Error! Reference source not found.)
22. We recommend that OFFER
conduct a thorough consumer education programme prior to April
1998 to ensure that customers know what opportunities the liberalised
market will offer them and how they can change supplier. (Para
Error! Reference source not found.)
23. We recommend that the
Government should consider granting the Director General statutory
authority to direct reform of the Pool designed to ensure that
consumers receive the maximum potential benefits of competition
and that the Director General keep the development of competition
in generation under active review. (Para Error! Reference source not found.)
24. We recommend that the
Director General produce agreed and workable contingency plans
to come into operation in the event that one or more of the PESs
fail to have its systems ready on time. (Para Error! Reference source not found.)
25. We recommend that the
Director General should continue to monitor all parties' progress
towards liberalisation and publish regular reports. He should
not hesitate to announce a short postponement should he judge
it necessary. (Para Error! Reference source not found.)
