HC Deb 08 May 1972 vol 836 cc885-6
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.

Mr. Tom Boardman

No, Sir. Determining the formula is a matter for the boards themselves.

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 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.