Prospect of tougher controls knocks electricity shares
Tuesday 26 April 1994
Initial proposals outlined in a letter from Professor Stephen Littlechild, the director-general of electricity supply, could result in one-off cuts in electricity distribution charges of around 20 per cent, followed by a limit keeping annual price increases to inflation minus 3 or 4 per cent.
The initial price cut would mean a drop of about 7 per cent in electricity bills, of which distribution costs make up a quarter.
Senior executives in most of the companies were in discussions yesterday to prepare for meetings over the next few weeks with Professor Littlechild, and executives said they needed more information from the regulator before they could understand his approach to the price cuts.
In his letter to each company, Professor Littlechild said: 'I am conscious that there are many issues involved. We should aim to touch on all of them at the meeting but we shall need to concentrate on the most significant ones.'
Among the issues are: standards of service offered by the companies; electricity connection and standing charges; company profits; financial requirements; and whether the proposed new price controls should last three or five years.
While Professor Littlechild's proposals are intended to start debate, it is thought that he will not be willing to change his stance significantly on the level of price controls.
Sources at Offer, the electricity regulator, are angry at the way information contained in the letter has been leaked. Professor Littlechild is in the United States but staff said that he would be dismayed at the publicity over a process that is supposed to be confidential.
- 1 Michael Douglas regrets 'embarrassing' Catherine Zeta-Jones with oral sex comments
- 2 Tunisia hotel attack: Locals form 'human shield' to protect hotel from gunman Seifeddine Rezgui
- 3 Tunisian builder has been hailed a hero after knocking gunman to the ground with roof tiles
- 4 German ethics council calls for incest between siblings to be legalised by Government
- 5 E.L James's #AskELJames Twitter Q&A didn't go exactly as planned
Kim Jong-un shows off airport designed by architect he likely had executed
Michael Douglas regrets 'embarrassing' Catherine Zeta-Jones with oral sex comments
Tunisia hotel attack: Locals form 'human shield' to protect hotel from gunman Seifeddine Rezgui
Dutch city of Utrecht to experiment with a universal, unconditional 'basic income'
German ethics council calls for incest between siblings to be legalised by Government
The moment a Queen's Guard soldier lost it and drew his gun at annoying tourist
Greece crisis: The wider lesson is that it’s time to abandon this failed experiment in currencies
'I wish the BBC would stop calling it Islamic State' – David Cameron unleashes frustration at broadcaster
Extend Right To Buy to tenants of private landlords, Labour's Jeremy Corbyn says
David Cameron struck double blow in his hopes to win Britain a new EU deal
Pentagon accuses Russia of 'playing with fire' over nuclear threats towards Nato
iJobs Money & Business
£22500 - £27000 per annum + OTE £45K: SThree: Since our inception in 1986, STh...
Negotiable: Recruitment Genius: This extremely successful and well-established...
Competitive with monthly bonus: Guru Careers: We are seeking an experienced FX...
Competitive (Freelance) : Guru Careers: An Investment Writer / Stock Picker is...