UK has the most competitive energy market in the EU and G7

PRNewswire-GNN London 30 January

London, 30 January /PRNewswire-GNN/ --

DEPARTMENT FOR BUSINESS, ENTERPRISE AND REGULATORY REFORM News Release
(2008/22) issued by The Government News Network on 30 January 2008
The UK's energy market remains the most competitive in the EU and G7 it
was revealed today, with the publication of independent research. Business
Secretary John Hutton hailed the report as evidence that the UK market was
delivering for consumers, and called for more open and transparent markets
to be replicated throughout the rest of Europe.

The report, from the Oxford Economic Research Associates (OXERA), monitors the
competitiveness of the energy market by assessing a range of factors. These
include the market shares in generation and supply, the separation of
transmission from generation and supply and the availability of regulated third
party access to gas and electricity transmission and distribution networks.

Only 11 EU members and none of the other G7 countries have currently
deregulated their energy markets sufficiently to be assessed.  A further
eight EU members are expected to qualify to be assessed in 2007.

Business Secretary John Hutton said:

"Creating an open and competitive energy market has meant that UK consumers
have consistently benefited from amongst the lowest energy prices in Europe.
While it is true that wholesale energy prices are rising, greater choice
and transparency are clearly the best protection against these costs being
disproportionably passed onto consumers.

"That is why we want to see the UK's open and transparent markets replicated
throughout the rest of Europe. Liberalised energy markets - such as the one
we have in the UK - could save EU consumers tens of billions of euros a year.

"We welcome the robust actions the European Commission has already taken to
liberalise European energy markets, and we will continue to encourage and
support further work."

Notes to editors:

1. The Department for Business has a Public Service Agreement target that the
UK should be among the top three most competitive energy (gas and electricity)
markets in the EU and G7. The achievement of this target is independently
monitored each year and the results published.  The work is carried out by
Oxford Economic Research Associates (OXERA).

2. Today the final results of the 2005 analysis and the preliminary results
for 2006 have been published.  They show that the UK has the most competitive
markets for gas and electricity in the EU and G7.  This has been the case
over the whole PSA period (2004-08).

3. Last September, the Commission published proposals - Third Package of
Energy Liberalisation - for a real step change in opening up Europe's energy
markets. The UK strongly supports these proposals which would prevent incumbent
energy players from keeping others out of the market and promote competition.

4. The Oxera report is available electronically from BERR Press Office or at:
www.dti.gov.uk/energy/markets/competitiveness/page28432.html

5. The Department for Business Enterprise and Regulatory Reform helps UK
business succeed in an increasingly competitive world.  It promotes business
growth and a strong enterprise economy, leads the better regulation agenda
and champions free and fair markets. It is the shareholder in a number of
Government-owned assets and it works to secure, clean and competitively
priced energy supplies.