Oral Answers to Questions

Debate between Charles Hendry and Elizabeth Truss

Thursday 10th February 2011 Commons Chamber

[Charles Hendry]

Our evidence shows that community schemes—where there is community ownership of the scheme—get through the planning process much more readily than non-community schemes. As we move forward, we are keen to see schemes that will keep the local business rate within the local community and provide additional benefits through community ownership, so that communities can see exactly what they are getting out of having such a facility in their areas, rather than, as sometimes happens, getting the pain but not the gain.

[Elizabeth Truss (South West Norfolk) (Con)]

16. What steps he is taking to ensure that electricity consumers in areas with only one supplier are not charged excessive amounts.

[The Minister of State, Department of Energy and Climate Change (Charles Hendry)]

Ofgem regulates distribution network operators through price controls that limit the amount that they can charge for connection services. For most connection services, DNOs can recover only expenses that are reasonably incurred. When a customer disputes a connection charge, they can raise the issue with the DNO through its complaints procedure. Ofgem has powers to determine whether a connection charge is reasonable after other avenues are exhausted.

[Elizabeth Truss]

My constituent David Goulty has been quoted £1,200 for a connection by UK Power Networks. Also, the Snetterton industrial site near the A11 has been quoted £6 million to £8 million for connecting it to the national grid. I am concerned that this company is the sole supplier in this area, and I would like to know what action the Government and Ofgem are taking to ensure that it is not charging over the odds for connections.

[Charles Hendry]

My hon. Friend raises a very important point, which I hope she will pursue through Ofgem as well. The costs of those mechanisms are calculated by the local area network using a methodology agreed by Ofgem, which means that it can recover only reasonable costs associated with the connection work. If the complaints procedure has been exhausted, Ofgem can then determine whether the costs are reasonable. Consumers can also consider using an independent connection provider that might be able to offer a better deal.