HC Deb 23 March 1981 vol 1 c625
18. Mr. John Hunt

asked the Secretary of State for Energy when next he intends to review energy pricing policy.

Mr. Norman Lamont

My right hon. Friend and I have made clear the Government's approach to energy pricing on many occasions in this House. The Government, of course, keep their implementation under continuous review.

Mr. Hunt

In considering the question of gas prices, will my hon. Friend take into account the widespread bewilderment in my constituency and elsewhere at the scale and timing of the increases in charges to domestic consumers? I acknowledge that a case can be made for higher gas prices, but will my hon. Friend do all that he can to ensure that that case is presented to the public in simple and intelligible terms?

Mr. Lamont

I agree to do that for my hon. Friend. I am sure that he knows that domestic gas in this country has not been making a profit. That is one reason why prices had to rise. The second simple reason is that the cost of new supplies from the deeper northern North Sea is very much greater. Those are the reasons, and we should be able to get them over to the House. I know that the increases are not welcome, but they are inevitable and necessary.

Mr. Merlyn Rees

How should I explain to industrialists who ask me about energy pricing that, while they have been given something in the Budget, some of them should pay more for derv, thus washing away any gain they may have had from the Budget?

Mr. Lamont

There will be considerable relaxations in firm gas prices. I admit that the companies that will benefit thereby will be different from those that will have to pay more for their derv. I am referring to the intensive energy users, particularly those that use energy as a feedstock. They will benefit immeasurably.