§ 24. Sir Stanley Reedasked the Minister of Transport whether, in view of the restriction of private consumers of electricity to 75 per cent. of their normal consumption, he will consider taking powers, by regulation or legislation, to ensure that where two-part tariffs are practised the base charge shall be reduced to 75 per cent. of the standing figure?
§ Captain WallaceThe base charge under an ordinary two-part tariff is a service charge to cover those costs which do not vary with the amount of electricity consumed. An automatic adjustment such as my hon. Friend suggests would, therefore, not be appropriate.
§ Sir S. ReedIf the base charge is a charge for services rendered, and under the revised regulations those services are not rendered, and if those services are now devoted to other profitable purposes, is not the case in equity for such a revision a very strong one?
§ Captain WallaceI cannot altogether accept what my hon. Friend says, but if there are specific cases in which he thinks the two-part tariff is shown to be inequitable, I shall be prepared to consider them.
§ Mr. StephenIs there any reason for the reduction to 75 per cent. at all?
§ Captain WallaceI presume the need for saving fuel.
§ Rear-Admiral BeamishIs my right hon. and gallant Friend aware that the majority of electricity undertakers have recently increased their charges by 10 per cent.?