HC Deb 26 November 1979 vol 974 cc856-8
4. Mr. William Hamilton

asked the Secretary of State for Energy if he is satisfied with the adequacy of fuel supplies to meet all demands in the forthcoming winter.

Mr. John Moore

Given normal seasonal weather and no interruptions in production or supply, I do not foresee any general difficulty in meeting our fuel requirements this winter. However, the need for exercising the maximum restraint in our energy consumption remains as important as ever.

Mr. Hamilton

What estimate has been made of the effect on the United Kingdom of the threatened limits in production of oil in Saudi Arabia? What will be the effect on demand of the swingeing increases in price likely to take place in all three fuels—coal, gas and electricity?

Mr. Moore

The first question refers to supplies to this country. Oil stocks at CEGB power stations are regarded as adequate given normal conditions. On the second part of the question, a more rational use of price in the valuation of energy as a rare resource in our society will be a feature in good long-term conservation.

Mr. Budgen

Does not my hon. Friend agree that far more attention should be paid to the price mechanism in respect of fuel? If that was done, particularly in respect of gas, it would give to the producers of gas a higher price which would justify them in putting in the pipes and other capital equipment so that it would no longer be economic to continue the wasteful flaring of gas in the North Sea.

Mr. Moore

It is clear that consistency in energy pricing is rational. Clearly, however, movements towards such consistency must be careful and gradual.

Mr. Ashton

The Minister's statement today is as ambiguous as ever. Many industrialists are genuinely disturbed by the stories they keep reading in the press and by speculation about a massive increase in the price of gas this winter, or that the British Gas Corporation will not be able to supply its full amount to existing installations. Will the Minister make a concrete statement about whether the price is going up, so that people know where they stand?

Mr. Moore

This question was directed to supplies and availability. Anything that encourages people to assume that there will be difficulties might add to the problem. We refer to the other question later.