HC Deb 13 December 1982 vol 34 cc16-7
25. Sir Geoffrey Johnson Smith

asked the Secretary of State for Energy when he last met the chairman of the Central Electricity Generating Board to discuss electricity prices.

Mr. Lawson

I am in regular contact with the chairman of the CEGB on all matters of mutual interest.

Sir Geoffrey Johnson Smith

When my right hon. Friend meets the chairman, will he thrash out the question of prices so that the small minority of intensive users can have a better deal? May I remind my right hon. Friend that he earlier said that they are not getting electricity at internationally competitive prices? If neither my right hon. Friend nor the chairman can do anything, will they prevail on someone else in the Government to take action, as those users are a crucial part of British industry?

Mr. Lawson

I recognise my hon. Friend's anxiety, which he has voiced on a number of occasions. The Government have already done a great deal. I mentioned the £100 million contracted consumer load scheme announced in this year's Budget and I have made it clear, that, with the industry's agreement, there will be a standstill on electricity prices next year. In real terms they will fall for everyone. That is of great benefit. Over one half of the £500 million benefit will go to industry. Certain countries subsidise consumers in various circumstances, but I am sure that my hon. Friend would not suggest that we equal every subsidy given. If that is what he is suggesting, how does he suggest that we pay for it?

Mr. Moate

If my right hon. Friend agrees that the key to electricity prices is the competitive position of coal, what is the economic logic of the National Coal Board exporting coal to the Continent at prices below those available to United Kingdom customers?

Mr. Lawson

I believe that my hon. Friend is referring to one particular contract with France. The National Coal Board is doing everything that it can to make the industry more efficient and bring down the cost of coal. That will help British industry and the nation, and I hope that it will command the support of both sides of the House.