The U.K. government's gas industry regulator Office of Gas Supply (Ofgas) has unveiled a plan to offer a choice of gas supplier to a further 1.5 million residential customers beginning January 1997.
A new consultation document proposes opening the residential markets in Dorset and Avon to competition beginning Jan. 13, 1997, and in Kent and East Sussex and West Sussex beginning Feb. 7, 1997.
On Apr. 29, the government began a pilot scheme in Devon, Cornwall, and Somerset, under which 500,000 householders were offered a choice of suppliers including former monopolist British Gas plc.
Ofgas reckons more than 70,000 customers have deserted British Gas in favor of one of nine rivals licensed to provide gas under the pilot program (OGJ, May 6, p. 50).
The regulator said all nine new suppliers are offering gas cheaper than British Gas and that sometime in 1998 the remainder of the U.K. market will be opened to competitive gas supply.
Liberalization on track
Once liberalization is completed in 1998, said Ofgas, almost 19 million residential gas customers throughout England, Scotland and Wales will have a choice of supplier.
An Ofgas official said comments on the document are required by Oct. 9, but no problems are anticipated with the proposed dates.
Once the document is accepted, the official said it will likely be 3-4 weeks before a deadline is set for applications for licenses to supply gas in the new areas.
The regulator expects many of the nine companies currently supplying gas under the pilot scheme to apply for licenses in the new areas.
Other potential residential suppliers have given no indication of intentions but are thought to be watching keenly developments in the residential market.
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