§ 20. Mr. Campbell-Savoursasked the Secretary of State for Energy if he will make it his policy that industrial energy prices reflect variations in mean temperature.
§ Mr. GoodladNo, Sir. Prices are a matter for the industries concerned.
§ Mr. Campbell-SavoursHas not industrial space heating grown into a major cost for industry? In so far as there is a clear variation in mean temperature levels between, for example, the north of England and Scotland and the south, is there not a justification for the Government to introduce an energy premium to help manufacturers in the north of England and Scotland who have to pay higher energy prices and who are now at a competitive disadvantage?
§ Mr. GoodladAs I said, tariff structures and prices are a matter for the industries concerned. Tariffs for gas and electricity are structured to reflect the cost of supply, including, where appropriate, the main variations in costs caused by patterns of demand. It is unlikely that relating prices to temperatures would result in more accurate representation of costs, but I shall draw the hon. Gentleman's remarks to the attention of the chairmen of the Electricity Council and of the British Gas Corporation.
§ Mr. BruceDoes the Minister acknowledge that, as the hon. Member for Workington (Mr. Campbell-Savours) said, although industrial costs are not directly related to mean temperature, there is a component, and that in Scotland and the north of England there is real concern that there is not a fair opportunity even to compete on energy prices, given that the Scottish electricity boards do not negotiate industrial prices with their customers because the base price is less than that of the electricity boards in England and Wales? Does the Minister accept that all electricity boards should negotiate fair prices with their industrial customers, and that it should not be confined to the industries operating in England and Wales?
§ Mr. GoodladI shall draw the hon. Gentleman's remarks to the attention of the chairmen of the utilities concerned.