Charges

HC Deb 31 January 1963 vol 670 cc1107-10

6. Mr. Wade

asked the Minister of Power if he will give a general direction to electricity boards that they should not increase electricity charges in such a way as to cause hardship to occupiers of small houses and bungalows.

Mr. Wood

No, Sir.

Mr. Wade

The Minister will appreciate that in framing this Question I had to consider how to bring it within order. Is he aware that there are in Yorkshire occupiers of small houses and old people's bungalows who are faced with increases in electricity charges of 40 or 50 per cent., and it is not much consolation to them to be told that the increases are necessary in order to finance the capital development of the industry in the future? Is there no way of lessening the effect of these steep increases?

Mr. Wood

It would not be right for me to go into the merits of these charges since that is very much a matter of the day-to-day administration of the board. In any event, there has been set up under the Acts machinery by which consumers who wish to complain can do so through the consultative councils and, ultimately, through the Electricity Council, either of which can, if necessary, make representations to me. I understand that the consultative council has not decided to do so in this particular case.

Miss Bacon

Does the Minister realise that, during the past few years, householders have been encouraged to buy more and more electrical appliances and that to be faced with an increase of 40 per cent. in the rates is causing great concern? The right hon. Gentleman says that there is machinery for complaint. Can he assure us in Yorkshire that something will happen as a result of complaints?

Mr. Wood

It will happen if the consultative council believes that the complaints are of such weight that they should be put to me. Then, naturally, my responsibility will be exercised and I shall have to examine the matter. In fact, the consultative council has not come to that conclusion.

7. Mr. Wade

asked the Minister of Power whether, in view of the provisions of the Clean Air Act and the conditions imposed on consumers as a result of which they have had to cease using coal fires, he will take steps to ensure that those who change over to electricity are not penalised by having to pay excessively increased electricity charges.

Mr. Wood

There are various smokeless fuels, including electricity, which can be used in smoke control areas, and competition between them is the best safeguard against excessive prices. The electricity boards do not have special tariffs for smokeless zones, but this is a matter for them.

Mr. Wade

Is the Minister aware that, where smoke control orders have been approved, householders who have been persuaded to change over to electricity have been suddenly faced with very steep increases in electricity charges so that they are really hit both ways? Is there any consultation between his Ministry and the electricity boards on this problem?

Mr. Wood

It would be quite impossible for boards to introduce differential tariffs in smokeless zones. In any event, the electricity boards are taking the action necessary, under the Government's White Paper on the Financial and Economic Obligations of the Nationalised Industries, to try to ensure a greater degree of self-financing of the electricity industry.

Mr. Ridley

Will my right hon. Friend not be panicked by the recent voltage reductions due to the cold spell into urging the electricity authorities to provide so much surplus capacity that electricity charges have to go up still further?

Mr. Wood

I hope that I shall never be panicked by anything. In answer to a later Question I shall try to deal with the particular issue which my hon. Friend raises.

Mr. T. Fraser

The right hon. Gentleman said in his earlier answer that in clean air zones an alternative smokeless fuel was available, namely, electricity. Is not he aware that it has become painfully apparent in recent weeks that this alternative fuel is not available when it is most required?

Mr. Wood

This raises larger issues which we shall be dealing with in later Questions. I mentioned electricity as one of the alternatives which householders in smokeless zones could use.

Mr. J. Hynd

How can the Minister argue, as he did on the previous Question about gas, that complaints could be put to the consultative councils when, at the same time, he tells us that the situation is due to Government policy in regard to redevelopment investment? What is the point of consumers complaining to the local consultative council if the Government control the situation by their own policy?

Mr. Wood

In fact, both Questions were about electricity. I was suggesting that tariffs were a matter for the boards and that the particular structure of the tariff was a matter on which the consultative council might be expected to have an informed and useful view. I pointed out that the consultative council had not taken the view which was pressed upon me by the hon. Member for Huddersfield, West (Mr. Wade).