§ 5. Mr. Ridleyasked the Secretary of State for Energy by what percentage domestic electricity bills would have to increase in the autumn in order to eliminate the subsidy received by the electricity industry and the payment of interest on its capital.
§ Mr. EadieI am advised by the industry that it would require a further increase of the order of 20 per cent. overall to be applied to domestic and other quarterly bills from the beginning of October to enable the area boards to break even in 1974–75.
§ Mr. RidleyDespite the policies of previous Governments as well as of this Government, would it not be more sen 8 sible to concentrate the taxpayers' money on helping those who cannot afford to pay their electricity bills rather than subsidising electricity as a commodity? Will the Government give further thought to this matter?
§ Mr. EadieIt was not possible to correct the legacy of the last Government's restraint on electricity prices in one step.
§ Mr. RidleyWhy not?
§ Mr. EadieIf the hon. Gentleman will read the report of the debate that took place on this matter he will observe that the Government are proposing to increase heating costs by one-third to the people to whom he referred. I think that he will also be aware that the official Opposition have a motion down on this matter on Thursday.
§ Mr. PalmerDoes my hon. Friend agree that until the advent of the last Government the electricity industry prided itself on being the most efficient of the nationalised industries, that it had never asked for a subsidy, and that it would prefer to be without it today?
§ Mr. EadieYes. The electricity industry had a glorious record until the previous Government took office. It is a pity that it then started to make substantial losses. Perhaps this Government will manage to rectify the situation.