3.The Government published a Green Paper, “A Fair Deal for Consumers - Modernising the Framework for Utility Regulation” (CM 3898) in March 1998, setting out a series of proposals for reforms to the system of regulation of the utility industries. In July 1998, the Government published a “Response to Consultation”, summarising its conclusions in respect of those proposals. More detailed consultation took place subsequently, principally on the proposals for establishing independent consumer councils for the utility sectors, and on the future of gas and electricity regulation. Copies of these documents can be accessed on the DTI website (http://www.dti.gov.uk/urt/).
4.The Act gives effect to the Government’s final proposals for the gas and electricity sectors in England, Scotland and Wales. It does not extend to Northern Ireland. The Act has a number of purposes. It establishes a single Gas and Electricity Markets Authority (“the Authority”), in place of the twin posts of Director-General of Gas Supply and Director-General of Electricity Supply. It aims to achieve a fair balance between the interests of consumers and shareholders by setting new duties and powers for the Authority and establishing an independent Gas and Electricity Consumer Council (“the Council”). It contains provisions to enable the gas and electricity sectors to make an appropriate contribution to the Government’s social and environmental objectives. It contains provisions to make regulation more transparent and predictable. The Act also updates the regulatory regime for the gas and electricity sectors to take account of and to facilitate further competition, and to reflect increasing convergence between the two sectors. It provides the powers needed to bring in new electricity trading arrangements.
5.The main provisions of the Act provide for:
Summary and Background