More U.K. gas markets slated to open Nov. 1

U.K. government gas industry regulator Office of Gas Supply (Ofgas) has set Nov. 1 as the date for introducing competitive gas supply to residential markets of Scotland and Northeast England.

So far, eight companies, including the British Gas Trading offshoot of defunct monopolist British Gas plc, have been issued licenses to compete for residential customers in these areas.

Clare Spottiswoode, Ofgas director-general, said, "I was particularly keen to ensure that the benefits of competition-which has brought down gas bills by as much as 20% where it has been introduced already-should be in place before the coming winter in what are traditionally the coldest regions of Great Britain."

So far, 2 million homes in southwestern and southeastern England have been given a choice of gas suppliers under two pilot schemes. Fourteen new companies have joined British Gas Trading in supplying these areas.

Under the pilot schemes, 370,000 residential customers have given their business to new suppliers. The remaining areas of Britain are to be opened to competition in five stages next year.

In February 1998, Ofgas expects to open up the markets of Cumbria, Greater Manchester, Merseyside, Kingston-upon-Hull, Lancashire, East Riding of Yorkshire, North Yorkshire, and York. These account for 2.8 million customers.

In March 1998, competitive supply will be brought to 2.9 million customers across Cheshire, Derbyshire, North Lincolnshire, Northeast Lincolnshire, Nottinghamshire, Shropshire, Staffordshire, and South Yorkshire.

In April 1998, the areas of Wales, Gloucestershire, Hereford & Worcester, Leicestershire, Oxfordshire, Warwickshire, West Midlands, and Wiltshire will be opened, accounting for 3.2 million customers.

In May, 3.1 million customers will join the liberalized market in Bedfordshire, Berkshire, Buckinghamshire, Cambridgeshire, Essex, Hampshire, Hertfordshire, Isle of Wight, Lincolnshire, Norfolk, Northamptonshire, and Suffolk.

The final stage, in June 1998, will involve bringing competition to 3.1 million customers in the Greater London area and in Surrey.