11 MAY 1996, Page 26

Electric light

SINCE there seems to be some confusion, I am happy to cast light on the govern- ment's policy on mergers in the power industry, as it stands this week. You can buy a regional electricity company (like Midland) if you are a foreigner. In Scotland a company (like Scottish Hydro) can gener- ate electricity, distribute it and buy an English company. English generating com- panies (like National Power and Power- Gen) are barred from bidding. Water com- panies are free to set up local utility monopolies, as in Lancashire (United Utili- ties). Nothing could be more logical. Next week's policy will follow, as soon as I can work it out.