Battle backs RECs timetable

John Battle, the Energy Minister, yesterday took over direct responsibility for ensuring that the liberalisation of the domestic electricity market begins on time next April.

After a meeting to review progress with the 14 regional electricity suppliers and the industry regulator, Professor Stephen Littlechild, the minister declared: "The buck stops with me to ensure it happens. I know who will get the letters of complaint if it is not delivered on time."

Mr Battle said that the timetable was "challenging but achievable" adding that there were no insuperable problems to launching competition in 10 months time.

In a report last month Professor Littlechild conceded that only three of the regional suppliers would definitely be ready to open up their markets to competition next April. The rest of the industry faces an uphill struggle getting the computer systems ready that will allow 19 million consumers to chose their supplier.

Even those suppliers who will be ready to begin testing their systems by the end of this year believe it will be well into 1999 before the whole country is able to shop around.

Mr Battle conceded that the computer system needed to enable all the suppliers to communicate with one another, the electricity pool and new entrants amounted to "the most sophisticated ever introduced in the western world". But he added: "I don't think we will be defeated by Deep Blue."

The minister refused to be drawn on what sort of price cuts he would expect to see once competition was established but he said that even marginal reductions would be worthwhile.

Professor Littlechild said consumers should not expect to see the same level of price reductions that have accompanied the opening up of the domestic gas market, where rival suppliers have undercut British Gas by up to 20 per cent.

Industry estimates point to an initial fall of perhaps 5 per cent but cheaper coal supply contracts could result in a doubling of the overall reduction.

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