HC Deb 14 June 2004 vol 422 c719W
Mr. Tynan

To ask the Secretary of State for Trade and Industry what assessment she has made of likely levels of(a) domestic electricity charges and (b) transmission charges under British Electricity Trading and Transmission Arrangements. [R] [178319]

Mr. Timms

The DTI has carried out an analysis of the possible impact of the British Electricity Trading and Transmission Arrangements (BETTA) as part of the Energy Bill Regulatory Impact Assessment (RIA) (www dti.gov.uk/energy/leg_and _reg/acts/ria2.pdf). Benefits to domestic customers are likely to accrue mainly to those in Scotland. We do not expect any appreciable effect to customers in England and Wales in the short term as BETTA does not substantially change the market in these regions.

The RIA estimated that a combination of increased electricity wholesale competition and a re-allocation in the way transmission charges are calculated could see annual domestic electricity bills in Scotland falling by around £13 per customer, all other things being equal. Customers who switch suppliers could make further gains.

Transmission charges under BETTA have not been finalised and as such all calculations are estimates. The Great Britain System Operator designate, National Grid Company (NGC), produced a recent consultation "GB Transmission Charging: Initial Methodologies" published on 8 April 2004. This sets out two scenarios of what transmission charges might be in 2005–06 following BETTA's planned introduction. This consultation is available at: www.nationalgridinfo.co.uk/betta/gb_consultations.html

NGC will submit final transmission charging proposals to the Industry Regulator, Ofgem, for approval later this year contingent on the SoS designating the relevant licence conditions once legislative powers are available.

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