Annex A
ENERGY
Progress in the Liberalisation of the Gas Market,
Second Report of 1997-98, HC 338: Government Response, Sixth Special
Report, HC 747
1. The Committee first reported on the gas
market in 1994. Following the introduction of competition into
the domestic market over 1996-97, and the demerging of British
Gas into Centrica and Transco in 1997, it undertook an inquiry
into the issues surrounding liberalisation. The Committee held
two oral evidence sessions in November 1997 and published its
Report in January 1998.
2. The Committee expressed concern over
the outstanding issues regarding prepayment meters and customers
using them, particularly in reference to payment issues and urged
that Ofgas exercise vigilance in relation to potentially anti-competitive
practices. It recommended the establishment of an Energy Consumers'
Council as soon as possible, and the development of new regulatory
mechanisms to deal with multi-utility provision.
3. The Government response was received
in June 1998. Gas and Electricity regulators were charged with
writing an action plan to address prepayment issues. Competition
issues were included in the 1998 Competition Act which created
the Competition Commission. The Government subsequently published
the Green Paper on Utility Regulation which looked at multi-utility
regulation.
4. The Committee has pursued these matters
in annual evidence sessions with the Regulator, most recently
on 28 November 2000.
Development in the Liberalisation of the Domestic
Electricity Market, Tenth Report of 1997-98, HC 871: Government
Response, Seventh Special Report, HC 1130, pages xvii-xxiii
1. The Committee reported in 1995 and 1997
on the electricity supply market and its liberalisation. By the
beginning of 1998 the Overall Programme Manager to the Director
General of Electricity Supply had admitted that the programme
for liberalisation had slipped. Following this announcement and
in the light of its Report into gas liberalisation, the Committee
undertook an inquiry into the development of electricity liberalisation.
It heard evidence in June 1998. The Report was made in July 1998.
2. The Committee recommended that the Director
General of Electricity Supply (DGES) use the review of price restraints
due in 2000 to reassess the Public Electricity Suppliers' (PES)
"allowable" costs and urged the DGES to compile comparative
figures for consumers enabling them to identify where savings
might be made. It expressed its concern at the spiralling costs
of liberalisation, which had risen from a projected £375
million over five years to £726 million.
3. The Government responded in October 1998.
It agreed that PESs' allowable costs would be reviewed in 2000;
PowerGen and National Power were required to divest plant to encourage
competition.
4. The Committee has pursued these matters
in annual evidence sessions with the Regulator, most recently
on 28 November 2000.
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