APPENDIX 2
Memorandum by the British Ceramic Confederation
I was asked by the Chairman, Peter Luff, to
write to you setting out our concerns regarding gas prices, particularly
as they relate to correspondence and discussions with the Energy
Minister.
I am the Chairman of the Energy Intensive Users
Group in addition to being the Chief Executive of the British
Ceramic Confederation. The Energy Intensive Users Group met with
Malcolm Wicks on 20 July 2005 following initial discussions with
Patricia Hewitt and a Working Group with DTI Officials. The outcome
was the attached statement. The DTI undertook to take the action
specified and perhaps more importantly to review the progress
made at appropriate intervals. We are now in the process of seeking
a further meeting.
One area which requires further probing or elucidation
is the issue of the terms on which contracts are available. Historically
the regulated market in European countries has been more beneficial
to industrial users. There have been some suggestions that similar
terms have been enjoyed by some UK customers, particularly some
of the early gas turbine generators. I sought personally to ensure
that this issue was included in the agreed actions. The DTI took
the view that the issue could not be included explicitly because
anti-competitive behaviour or abuse could not be implied without
specific evidence.
The issue regarding the forms of contract which
are available is a major issue. Different forms of contract are
clearly an element in any solution to ensure more competitive
gas and energy markets.
Please let me know if you require any further
information.
Kevin Farrell
Chief Executive
19 October 2005
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