HC Deb 10 March 1980 vol 980 cc912-3
9. Mr. Hal Miller

asked the Secretary of State for Energy by how much the price per therm for coal, gas, nuclear-generated electricity and petrol has risen in the last 10 years.

Mr. David Howell

Between mid-January 1970 and mid-January 1980 the prices of coal, gas, electricity and petrol purchased by the domestic sector increased by 301 per cent., 124 per cent., 303 per cent. and 278 per cent. respectively. The increases are based on information used in the compilation of the general index of retail prices.

Information on consumer prices of electricity generated specifically by nuclear power stations is not available as all electricity is supplied to the national grid.

Mr. Miller

On the basis of those figures, does my right hon. Friend agree that the price of petrol has not risen in line with other fuel prices since 1970?

Mr. Howell

I think that my figures show the comparative movements over the 10 years. I think that I said that the price of petrol had risen by 278 per cent., which is lower than the prices that I gave for coal and electricity. That is what the figures confirm.

Mr. Ashton

What sort of pricing policy is it that raises the price of gas because the customers are using too much, cuts insulation grants in half after talking of a policy of conservation and then wants to increase the price of electricity because the customers are not using enough?

Mr. Howell

The hon. Member's last statement is inaccurate, as I made clear in an earlier answer, so I hope that he will withdraw it. As for insulation, I think that he is confusing the amount of Government activity and expenditure on conservation with the amount of conservation achieved. The Government take the view that conservation programmes should be judged by results, not by the amount of activity and the number of programmes that politicians can dream up to spend taxpayers' money.

Mr. Forman

In the light of his earlier answer about the movement of prices, does my right hon. Friend agree that it would help the Government's conservation policy if this were reflected in the real price movements, particularly for petrol? Can he advise the Chancellor of the Exchequer in that direction before the forthcoming Budget?

Mr. Howell

Those are matters for my right hon. and learned Friend the Chancellor. Perhaps my hon. Friend would like to direct his observations on that aspect, which concerns tax, to the Chancellor.