§ 11. Mr. Harry GreenwayTo ask the Secretary of State for Energy what further representations he has received seeking the abolition of standing charges on electricity and gas; and if he will make a statement.
§ Mr. Peter MorrisonI have received several representations on this subject. Standing charges are for the industries to determine and, in the case of gas, are subject to that industry's regulatory framework.
§ Mr. GreenwayWill my hon. Friend take into account the extreme pressure of standing charges on pensioners, especially on low consumers of gas and electricity? Will he find out what he can do to persuade both industries to abandon or diminish standing charges, for pensioners at least?
§ Mr. MorrisonLike my hon. Friend, I am concerned about the bill that pensioners have to face. To abolish standing charges completely would cost the industries some £1.1 billion per annum, which would mean increases 11 in the price of electricity and gas of about 15 per cent. On that basis, some 2 million pensioner households would be likely to pay more.
§ Mr. HaynesThe Minister will be aware that when his right hon. Friend the Secretary of State announced the increase in electricity prices he omitted to mention standing charges. In fact, his right hon. Friend and I fell out on that question. Ministers on the Treasury Bench do not seem to realise that if electricity prices are increased standing charges increase automatically. It is high time that standing charges were abolished.
§ Mr. MorrisonThe hon. Gentleman is no doubt aware of the same figures as I am, that during the past five years standing charges for electricity have decreased by about 10 per cent, in real terms and those for gas have decreased by 25 per cent, in real terms. That has been of benefit to the very people about whom he and I are concerned.