35. Mr. Edward M. Taylorasked the Minister of Technology if he will take steps to identify the reasons why the price paid by domestic consumers of gas in Scotland was 23 per cent. above the average price in England and Wales in 1968–69; and what estimate he has made of the extent to which natural gas supplies will reduce this differential.
§ Mr. Harold LeverThis was due to differences in the underlying costs, arising principally from the different geography and patterns of consumer distribution, housing development and consumption. Because England and Wales are receiving natural gas ahead of Scotland the differential is likely to increase at first, but should begin to fall thereafter.
Mr. TaylorCan the right hon. Gentleman confirm that natural gas will be supplied to Scotland at the same price as to other areas? To what extent does he think that that will contribute to reducing the large differential of 5s. in the pound, which the Minister admits will increase?
§ Mr. LeverWhen Scotland gets natural gas, it will get it in bulk at the same price as other regions, but the underlying costs of distribution will have to be taken into account in the final price. I think that there will be some reduction in differential, nevertheless, when natural gas comes to Scotland.