§ 9. Mr. JesselTo ask the Secretary of State for Energy by how much the level of prices for fuel, light and power has changed in real terms since 1986.
§ Mr. MoynihanThe cost of fuel, light and power to the domestic sector is estimated to have fallen by 8 per cent. in real terms between 1986 and 1991. For the industrial sector, it is estimated that the cost has fallen by more than 25 per cent. in real terms during the same period.
§ Mr. JesselIs not that a tremendously impressive achievement? It is no wonder that we receive so few complaining letters about electricity prices these days. Can my hon. Friend say how far that is due to privatisation?
§ Mr. MoynihanI believe that it is due both to privatisation and to the benefits of restructuring, especially in the electricity industry. It is evident that the emergence of competition in both generation and supply has had a significant impact on prices.
§ Mr. Tony BanksWhy is it, then, that so many of our constituents are coming to advice surgeries about bills that they cannot afford to pay? Is not it now time that the Minister decided that the standing charges, which are an unacceptable imposition, particularly on the elderly, should be abolished? Why have the Government not done something about that?
§ Mr. MoynihanThe hon. Gentleman will be able to tell his constituents, as I do mine, that domestic users and other small users of electricity are protected for the first time, as a result of the Government's initiative, by price controls against unjustified price increases.
§ Mr. RathboneCan my hon. Friend say what the price increases are likely to be in the forthcoming year?
§ Mr. MoynihanThe protection offered by electricity price controls against unjustified increases will limit increases up to April 1992 to the level of inflation as measured from October to October, subject to unforeseen circumstances. It is important that those controls are seen in a three-year context.