Clause 1 - Security and integrity of supply
Energy Bill [Lords]
8:55 am
Mr Laurence Robertson (Shadow Minister, Economic Affairs; Tewkesbury, Conservative)
The clause has aroused great interest throughout the industry, the House of Commons and the House of Lords. I first want to discuss the background to the clause, which was inserted in another place, before explaining why my hon. Friends and I have tabled amendments to it. It is important to put the issue in context, given what the industry has said.
The Electricity Act 1989, which the Conservative party introduced when in government, freed up the market through privatisation. There was also the privatisation of gas. Indeed, much of what we did then put us ahead of Europe in terms of liberalisation. The freeing-up of the electricity market led to the lowering
of electricity prices. Nothing in the clause should be seen as a reversal of that privatisation policy, and none of the words that I may utter should be taken to endorse such a reversal. I merely intend to explain the background to the Lords amendment and to our subsequent amendment to their amendment.
The House of Lords was persuaded to table an amendment after industry representatives expressed concerns about future security of supply because investment was not as forthcoming as they might have wished. Great concern was also expressed by many experts in the field, including Dieter Helm—who spoke about such matters on a visit to Tewkesbury—and Professor Ian Fells. I accept that much of that concern was expressed following the power cuts in California, New York and Italy and, in particular, those in London and the west midlands.