9. Mr. Robert G. HughesTo ask the Secretary of State for Energy what assessment he has made of the prospects for increasing competition in the supply of gas.
§ Mr. Peter MorrisonI am pleased to see early signs that competition is beginning to emerge in the supply of natural gas and I am confident that this trend will continue.
Mr. HughesI am grateful to my right hon. Friend for that answer. Does he agree that the fact that the price of gas to industrial consumers has fallen" and that the price 588 to the domestic consumer has also fallen if one does not take into account the rate of inflation, is a direct result of competition? Does he agree that the more competition increases the more likely we are to have lower prices?
§ Mr. MorrisonI agree with my hon. Friend. Competition has played an important part, as have the policies that the Government have pursued. That contrasts with what happened under the previous Labour Government; during their five years in office, prices increased substantially.
§ Mr. DoranOne method that the Government are using to increase competition in the gas industry is the diversion of gas supplies to electricity generation. As there are genuine fears that that diversion will lead to increased costs for domestic consumers and an increase in the already large import bill of 15 million tonnes of gas in equivalent terms, is that method under review? Surely such a review is necessary given the two major difficulties that the Government face—inflation and our balance of trade problems.
§ Mr. MorrisonI do not agree with the premise on which the hon. Gentleman asked his question. Gas is being used because it is extremely competitive; it happens to be environmentally good, too.