Energy: Electricity

Lord Berkeley Excerpts

Tuesday 11th January 2011 Lords Chamber

Asked by

[Lord Berkeley]

To ask Her Majesty’s Government what will be the financial impact on consumers of the changes proposed to the United Kingdom’s private electricity networks.

[The Parliamentary Under-Secretary of State, Department of Energy and Climate Change (Lord Marland)]

My Lords, the provision of third-party access to unlicensed networks will enable customers of those networks to take advantage of the competitive energy market by having the right to choose their energy supplier. As such, where alternative suppliers can offer a more competitive price than the incumbent supplier, customers will be able to make savings on their energy costs.

--- Later in debate ---

[Lord Berkeley]

I am grateful to the Minister for that reply, but is he aware that in the solution that he has just set out, it will require all the operators—the landlords of these private networks—to upgrade their supplies to grid standards at the cost of many millions? This applies to railways, airports, ports, sports centres—anywhere where there is subcontracted electricity. Does he agree that the Government should look at an alternative, which would be for the landlord to get competitive quotes, and so avoid this enormous cost on British business?

[Lord Marland]

My Lords, this is a complicated issue, and we have been in consultation with all the ports, airports and railways. That has been an extensive consultation. If the noble Lord wishes to meet with officials for further explanation and briefing on the consultation, I will, as always, make my officials available. I agree with him: it would be perfectly acceptable, if private network customers are satisfied with their private network suppliers, to go out to tender to obtain cheaper electricity. The fundamental point, however, is that in these difficult times, it is important that the customer has the cheapest and fairest electricity supply that is available.