Memorandum submitted by E.ON (LCO WL 30)

Welsh Language Order 2009

I am responding to the consultation on behalf of E.ON. Currently E.ON supplies electricity and/or gas to around 90,000 customers, distributes electricity to around 5,000 customers and produces electricity at three locations in Wales.

As a relatively small energy supplier in Wales we are keen to ensure that the legislation expected to result from the legislative competence order allows flexibility in the operation of a Welsh Language Scheme and does not lead to disproportionate costs which put at risk our ability to offer competitive services to Welsh customers.

Our trade body, the Energy Retail Association, has met the Heritage Minister, Alun Ffred Jones AM, and we welcome the flexible and permissive approach that has been demonstrated thus far in discussions about Welsh language services. Legislation that allows these services to be delivered in a variety of ways will be the most effective means of facilitating the use of Welsh in competitive utility markets, such as energy or telecommunications, and will reduce the risk of any increase in energy prices in Wales relative to England and Scotland or of a less competitive market.

The Committee may wish to note two apparent anomalies in the order in respect of energy services:

· It only covers electricity and gas energy supply. Many households are heated by oil, LPG or biomass and, although the supply may tend to be provided by smaller businesses, it would seem more appropriate for the National Assembly to decide the scope of any regulations than to exclude alternative energy supplies from the order.

· Electricity production is included, although there is no direct service provided to consumers.

The Committee may also wish to consider whether there should have been a full regulatory impact assessment. E.ON, together with a number of other organisations mentioned in the order, is a private sector business and as such further scrutiny should be given to the impact of this legislation on business operations.

March 2009