Reform Of The Utilities Regulatory System

EDM number 1230 in 1993-94, proposed by Peter Hain on 17/05/1994.

That this House notes yesterday's announcement by the Minister for Energy re-appointing Professor Stephen Littlechild as Director General of Electricity Supply for a further five years; believes that Professor Littlechild has irretrievably harmed Britain's energy industries, particularly coal; recalls that the Trade and Industry Select Committee's coal inquiry criticised the way in which Professor Littlechild discharged his duties, concluding that a vigilant regulator would have acted sooner to review price controls on the regional electricity companies' distribution business; suggests that the current crop of regulators are exceeding their remits and that there is no statutory basis for regulators to become policy makers; regrets the over-personalisation of regulation in the electricity supply industry has led to a situation whereby the interests of the electricity shareholders have been favoured over coal communities; notes that under Professor Littlechild's director-generalship that average electricity prices have risen by 10.6 per cent., that in his first year dividends catapulted by 63 per cent. with earnings per share rising 58 per cent.; believes that the principal objective of regulation should be to protect the national interest and not to further feather the nests of extravagantly paid directors of privatised utilities; and calls on the Government to completely overhaul the current regulatory regime, replacing it with a democratically accountable Utilities Commission which would benefit both the consumer and Britain's strategic interests.

This motion has been signed by a total of 38 MPs.