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Electricity (Single Wholesale Market) (Northern Ireland) Order 2007

I thank the Minister for his clear brief on a complex subject. I also thank him for making available to me his official Bill Team; I had an interesting conversation with them for some time this morning, which I found very helpful. But it is a very complex subject with a number of loose ends and is a brave challenge to those who are taking it on. In principle, I support the concept of a single market within the United Kingdom and the 32 counties. I hope that the total single market within the United Kingdom and Europe will come sooner rather than later, because it will make the position considerably more realistic. The noble Lord pointed out that the size of the market in relation to this order is extremely small, scattered and sparse. I have a number of questions. The first thing that one asks as an inhabitant of Northern Ireland is: what will happen to electricity prices? As a business person, you are thinking of the cost base, which between the north and the south must be very different, and if both sides are to have profitable businesses working in competition, that must leadto some complex differentials. The cost base of distribution, of power, the tax implications, the revenue from customs and excise are all different. We have quite a number of seriously different cost bases that must make trying to get some sort of parity within the 32 counties either very artificial or very difficult. My next question is, after asking what price changes are expected in the short term and given that we have seen publications and a press release stating that there will be significant savings to both sides of the border in the medium term—not the long term, I hope—will Northern Ireland in the early stages be subsidising the Republic, because I believe that the cost base in Northern Ireland is considerably lower than is currently the case in the Republic? What is being done with the current contracts between NIE and the generators, which are very favourable to them, but very unfavourable to the consumers? That was a short list of some of my questions and concerns. Putting on my cynical politician’s hat, I would like reassurance that I am not wrong to ask whether this is being done for real business reasons, or is it just for political posturing by both Governments? Having raised those matters, we support the principle of the single market. I would feel more comfortable in supporting it in realistic terms as a UK-Franco-Irish market than covering only 32-county Ireland.