§ 42. Mr. Petherickasked the Minister of Fuel and Power whether he will order a local inquiry to be held into the recent rise in the price of electricity in Falmouth, owing to the fact that consumers are being obliged to pay for the increased cost of the destruction of the town's refuse, for which increase they are not liable.
§ The Joint Parliamentary Secretary to the Ministry of Fuel and Power (Mr. T. Smith)No, Sir. My right hon. and gallant Friend is fully aware of the facts of the case. He recently authorised an increase of 10 per cent. in the price of electricity at Falmouth because he considered that the financial position of the Electricity Supply Corporation justified that course. That position had deteriorated for a number of reasons, principally the following. Under a long-standing contract, the Supply Corporation are bound, in connection with the working of their undertaking, to operate a destructor for the town's refuse". In consequence of the reduction, resulting from the salvage campaign,. in the amount of refuse sent for destruction, there was a decrease in the amount of electricity generated, with a consequent increase in the bulk supply taken by the Supply Corporation from a neighbouring undertaker. No corresponding reduction could be made in the cost of working the destructor. My right hon. and gallant Friend has, of course, no power to intervene in a matter of contract of this kind.
§ Mr. PetherickIs my hon. Friend seriously defending the situation in which consumers of electricity who are in no way responsible for the increased costs are made to pay those same costs?
§ Mr. SmithYes; my right hon. and gallant Friend was fully aware of the fact when he authorised this increase. As the hon. Member knows, this as a long-standing contract; and, in authorising this increase, my right hon. and gallant Friend took into account all the facts of the case.
Mr. PetheriekAs there is a matter of principle involved, I beg to give notice that I shall raise the matter on the Adjournment.