HC Deb 10 November 1975 vol 899 cc911-2
13. Mr. Neubert

asked the Secretary of State for Energy what discussions he has had with the Electricity Council, social security and welfare organisations about the hardship faced by consumers this winter as a result of increased fuel bills.

Mr. Benn

I recently met the Electricity Council, when it described to me its plans for helping consumers who may be in difficulties during the coming winter. I have written to all hon. Members on this subject.

Mr. Neubert

Has the right hon. Gentleman read the most recent report of the Price Commission—in particular, paragraph 2(9), which states that not only prices but, more significantly, costs in the nationalised industries are rising much faster than in the private industries? Is it not clear that, whatever steps he takes to relieve individual hardship, consumers are getting a much poorer deal from nationalised industries for their money?

Mr. Benn

The nationalised industries undoubtedly have got into difficulties because of the long period of restraint on prices imposed upon them. The Question, as I understood it, was about the problems of hardship that might follow from increasing tariffs over the winter. On that point, I am anxious to see that the matter is handled with the greatest possible sensitivity, and I have reason to believe that the fuel authorities will do so.

Mr. Mike Thomas

What part does my right hon. Friend expect the electricity, gas and coal industries to play in the discussions with the Secretary of State for Prices and Consumer Protection on the new price restraint package? What progress is being made in his departmental inquiry into tariff structures in the electricity and gas industries?

Mr. Benn

Discussions are in progress over a very wide range of issues, including the rôle of the Department of Health and Social Security and social benefits. In the discussions that we are holding about energy tariffs and the inquiries we have made into them, Ministers are very deeply involved, and I cannot say more at the moment.

Mr. Hordern

If the initiative of the Secretary of State for Prices and Consumer Protection to restrain prices by 5 per cent. in the coming year is to be carried out, how is the coal industry to meet its target of earning a proper return on its sales and assets?

Mr. Benn

I do not want to ask the hon. Gentleman simply to await what the Secretary of State for Prices and Consumer Protection will be saying about that, but obviously the implication, for the energy industries, of proposals of the general character that she has mentioned has been the subject of discussion. We have in mind the move towards economic pricing, as has been made clear by the Government.

Mr. George Rodgers

Will my right hon. Friend refute the suggestion that has been made in some quarters of the electricity supply organisation that gas prices should rise to the level charged by the electricity authorities in order to provide a common layer of charges?

Mr. Benn

There is a competitive element in fuel prices, and the argument has been put that gas is underpriced, but this is not a view that I have felt would justify an increase in prices beyond that authorised by the Price Commission.

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