§ 8. Dr. Marshall
asked the Secretary of State for Trade and Industry whether he will issue a direction to area electricity boards to revise the formula used for calculating maximum resale prices allowable under Section 29 of the Electricity Act, 1957.
§ Dr. Marshall
Is the hon. Gentleman aware that the formula used for this purpose by all area boards in England and Wales allows landlords to make a legal profit during periods of heavy consumption of one-tenth of a new penny for each additional unit of electricity consumed? Will he make this practice illegal?
§ Mr. Boardman
The hon. Gentleman knows from correspondence which he has 886 received that the overcharge that is made of 1p is over the minimum rate, which is to compensate for the higher rate that is charged on initial units. This is reckoned to be a fair average and does not amount to an illegal profit.