RNS No 9929q
OFGAS/OFFER
21st January 1998


Ofgas and OFFER seek assurances on dual fuel contracts

Ofgas and OFFER, the gas and electricity regulators have asked the Public
Electricity Suppliers (PESs) and British Gas Trading (BGT) to stop 'dual fuel'
offers covering gas and electricity in areas where their respective supply
market is not open to competition.

In a joint statement issued today, the two regulators say they have asked the
PESs and BGT for a formal undertaking that they will act in full accordance with
these proposals.  If the companies do not provide the necessary assurances,
OFFER and Ofgas will consider other steps including a reference to the
Monopolies and Mergers Commission, the statement says.

Today's decision aims to prevent the different timetables from distorting
competition.  The domestic electricity market is due to open to competition in
four areas in September 1998, whereas gas competition, which is already open to
4.5 million customers, is due to be complete by May or June 1998.

The regulators also looked at the implications of the different timetables for
introducing competition in meter reading.  Gas meter reading has been open to
competition since 1 October 1996, but under existing proposals each PES is to
retain a monopoly over electricity meter reading in its franchise area until
March 2000.

To limit the adverse effect on competition, OFFER and Ofgas propose that PESs
should offer their gas and electricity meter reading service on a
non-discriminatory basis to all suppliers.

Ofgas is also asking gas suppliers affiliated to PESs for undertakings that they
will subject their combined gas and electricity meter reading service to
competitive tender until the electricity meter reading market is open to
competition.

In addition Ofgas is asking for undertakings from gas suppliers affiliated to
PESs that they will not attempt to sell gas in their own franchise areas until
that area is open to competition in electricity.  Any contracts signed to date
would be honoured, the statement says.

Notes to editors

1. Copies of today's statement Dual Fuel are available from the Ofgas Press
Office and from 23rd January onwards from the Ofgas Distribution Centre,       
3 Tigers Road, Wigston, Leicestershire, Tel: 0116 277 2617

1.2 Ofgas and OFFER issued a joint consultation paper Dual Fuel Offers in the
Gas and Electricity Markets on 20 November 1997. Comments were invited on the
paper by 19 December 1997. Copies of the paper are available from the Ofgas
Distribution Centre, 3 Tigers Road, Wigston, Leicestershire, Tel: 0116 277 2617

Press enquiries:    Chris Webb          0171 932 1608
                    Fran Elliott        0171 932 1628
                    Mark Wiltsher       0171 932 1606
                    Tricia Back         0171 932 1607
                    Out of hours        0374 728971
                    Web Site            http://www.Ofgas.gov.uk/

                    Ofgas has an ISDN line for radio interviews

END

MSCGLGZMMMNLRMZ
Octopus Future Generatio... (LSE:OFG)
Historical Stock Chart
From Jun 2024 to Jul 2024 Click Here for more Octopus Future Generatio... Charts.
Octopus Future Generatio... (LSE:OFG)
Historical Stock Chart
From Jul 2023 to Jul 2024 Click Here for more Octopus Future Generatio... Charts.