Clause 160 - Regulated markets

Part of Enterprise Bill – in a Public Bill Committee at 12:45 pm on 7 May 2002.

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Photo of Miss Melanie Johnson Miss Melanie Johnson Parliamentary Under-Secretary, Department of Trade and Industry 12:45, 7 May 2002

Again, I can help the hon. Gentleman. Subsection (9) ensures that the commission must take into account only those issues that fall within the scope of the relevant statutory functions and not the standard set of customer benefits. The amendment gives the Competition Commission discretion to consider customer benefits alongside its duty to take account of regulator statutory functions. A standard set of customer benefits is set out in clause 126.

The benefits to consumers are defined in terms of lower prices, higher quality and greater choice of goods and services, and are covered in some form in most regulator statutory duties. For example, Oftel has a duty to promote the interests of consumers in respect of price, quality and choice, and a duty to promote research into the development and use of new techniques. Parliament has given the regulator its statutory duties, which must be taken into account when the regulator performs its function. It is right that the Competition Commission should have regard to those duties when considering relevant action.

However, although all the regulators have a duty to promote or facilitate effective competition, certain regulators do not have an explicit duty covering each of the standard set of customer benefits. For example, Ofwat has no specific duty relating to innovation. It is likely that in practice the regulator would consider the benefits of innovation in his duty to promote or facilitate effective competition, but it is not always explicit in the statutory functions.

The Competition Commission has discretion to take into account the standard set of customer benefits in market investigations in "normal" sectors. In regulated sectors, the discretion to consider customer benefits is replaced by a duty to take into account regulator statutory functions. However, if it is uncertain whether the standard set of customer benefits is included in the regulator statutory functions, we agree with the hon. Gentleman that we need to revisit the wording in subsection (9) to clarify that. Therefore, I agree to consider his amendment further. In the light of my remarks, I hope that the hon. Gentleman will seek to withdraw the amendment.