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Energy Regulations (Consumer Prices)

The hon. Gentleman is right, and anticipates what I am going on to say. There has been a fundamental change in the market in the 20 years since privatisation. Initially there were two electricity generators, one integrated gas producer and a lot of regional monopolies. We then had a proliferation of competitors, but the industry has since consolidated and in the past 10 years has moved from 20 competitors to six vertically integrated companies. The question is whether that matters and why. It matters because it has a major impact on new companies trying to enter the industry. I have had correspondence from a company called BizzEnergy, which is a specialist producer trying to sell wholesale energy supplies to small-scale business. In its letter to me and the attached note—the Minister probably has it, because the company has campaigned actively—it states:"““One of the biggest concerns facing companies like BizzEnergy is that with the 'Big 6' having their own power stations, with direct access to energy sources…this leads to market inconsistencies and aids the anti-competitive structure of the market…The liquidity of the wholesale market is currently very poor and sporadic due, in part, to this level of vertical integration.””" It concludes:"““This has a direct impact on independent energy suppliers such as BizzEnergy and its potential new customers.””" BizzEnergy is not the only company that is making that point. British Energy, which is the big nuclear energy company, has made a similar point about the dominating influence of the six integrated companies and their distorting effect. I do not wish to open the argument about nuclear power, but that is clearly testimony to the working of the market.