HC Deb 17 July 1978 vol 954 cc7-8
6. Mr. Tim Renton

asked the Secretary tary of State for Prices and Consumer Protection when he expects next to meet the chairman of the Electricity Consumers' Council.

The Under-Secretary of State for Prices and Consumer Protection (Mr. Robert Maclennan)

My right hon. Friend is always ready to meet the chairman of the Electricity Consumers' Council but has no immediate plans for such a meeting.

Mr. Renton

Does the Minister or the Secretary of State get the impression that the Electricity Consumers' Council is satisfied with the efficiency of the British electricity industry? Is it not a fact that British generating and distribution costs do not compare well with other electricity industries of a comparable size throughout the world and that, therefore, the consumer is paying more per unit for electricity than he would if the industry were really efficient?

Mr. Maclennan

The first thing to recognise is that the industry is now recovering from the policy pursued by the Conservatives when they were in power and is getting back on to the sort of commercial footing which the Conservative Government would not allow it to achieve. As to the views of the council, I follow with great interest the evidence given to the committee of which the hon. Gentleman is a member and I hope shortly to meet the chairman to discuss the council's views.

Mr. Ronald Atkins

Does my hon. Friend agree that the higher unit costs in distribution, compared with certain commercial undertakings abroad, may be due to the fact that the electricity authorities in this country provide a service, very often at a loss, to all the people of this country—even those in remote areas?

Mr. Maclennan

The electricity industry does provide such a service, but the questions raised by my hon. Friend and by the hon. Member for Mid-Sussex (Mr. Renton) are the subject of scrutiny by the Price Commission in determining whether particular tariff proposals should be permitted. Questions of unit cost and the like fall squarely within the Commission's remit. The Conservatives gave no support to the examination of the electricity industry in this way.

Mr. Montgomery

Has the Minister thought about having an investigation made into the efficiency of the electricity industry in this country? Has he seen the press report which quoted the Secretary of State for Energy as suggesting that we should ban all coal imports? Would not this have the effect of increasing electricity costs in this country?

Mr. Maclennan

The Price Commission has already made at least two examinations of the electricity industry and has recently published a report on the South of Scotland Electricity Board, which we are considering with great interest and which reflects on some of these matters.

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