Watchdog bites back at critic

A ROW has erupted between Professor Stephen Littlechild, director-general of the electricity regulator Offer, and a leading utilities consultant, Dieter Helm, over the state of regulation in the UK, writes Mary Fagan.

Professor Littlechild publicly rejected assertions by Dr Helm that regulation in the UK was in crisis. Speaking at a energy conference, he attacked Dr Helm for saying that damaging disputes were raging in most of Britain's privatised utilities.

Professor Littlechild declared: 'Vigorous debate . . . followed by a reference to the Monopolies and Mergers Commission if agreement cannot be reached, is a strength of present arrangements, not weakness.'

His comments come at a time when many observers are questioning the future shape of regulation and asking whether the system is too dependent on personalities.

Professor Littlechild said companies could not be expected to welcome limits on monopoly pricing or measures to promote competition.

Gas prices could rise by 15 per cent in real terms by the end of the decade, according to Cedric Brown, chief executive of British Gas.