HC Deb 28 February 1983 vol 38 cc13-4
15. Mr. Proctor

asked the Secretary of State for Energy if he will make a statement on the present position with regard to the review of the electricity bulk supply tariff.

Mr. John Moore

My right hon. Friend the former Secretary of State commissioned a review of the bulk supply tariff in 1980. After detailed consideration of this, my right hon. Friend has agreed with the electricity supply industry that there will be no increase in the average of electricity prices this year.

Mr. Proctor

Will my hon. Friend give an assurance that, in any definition under the bulk supply tariff, consideration will be given to defining industries, such as the paper and board industry, with a load factor of about 50 or 60 per cent.?

Mr. Moore

I cannot give my hon. Friend an assurance, but I shall look at the matter. He will be aware that it is only in the area of 80 per cent. or above that the CBI notices disparities. Most of the paper and board industry is below 60 per cent.

Mr. Hardy

Will the Minister look at the public and private sectors of the remaining steel industry where steel is made by the electric arc furnace method? That process is extremely expensive. Will the Minister note that Italy, which is not self-sufficient in energy, is able to provide electricity for arc furnaces at much lower prices than we are?

Mr. Moore

I appreciate the hon. Gentleman's point, but it is the height of impudence for the official Opposition, when talking about industrial electricity prices, let alone gas prices, not to remember their record. From 1974 to 1979 industrial electricity prices went up by 115 per cent. Since the Conservative Government have been in office industrial electricity prices have gone up by 45 per cent. Industrial gas prices went up by 288 per cent. while the Labour Government were in office. They have gone up by 76 per cent. in our period of office. Those are the realities that have produced the industrial difficulties that we face.