HC Deb 23 November 1994 vol 250 cc588-9
9. Mr. David Evans

To ask the President of the Board of Trade how much the average domestic gas bill is likely to fall as a result of the effects of the Gas Bill.

Mr. Eggar

Janice will be happy to know that she is likely to be able to benefit from about a 10 per cent. cut in her gas bills as a result of competition.

Mr. Evans

I thank my hon. Friend for that reply. Will he confirm that since privatisation gas prices have fallen by 23 per cent.? I know that my hon. Friend likes to have instant control of himself, but does he agree that Bambi has already lost control of the lot opposite? Does he also agree that—[HON. MEMBERS: "Reading".]—we have not heard much about the 50 per cent. pay rise that Bambi got when he became leader of that lot on the Labour Benches?

Mr. Eggar

I can answer yes, yes, yes and yes.

Mr. Harvey

When the Government introduce a competitive market into the gas supply industry, what protection do they intend to offer small-volume consumers in areas remote from the sources of supply against the higher economic costs of supplying gas to them? Upon whom will the cost of restructuring the industry fall?

Mr. Eggar

As the hon. Gentleman knows, a number of issues lie behind that question. In the coming months, a regional differential in prices will be introduced that will differentiate region by region as opposed to urban area as against rural area. We therefore do not expect transportation charges to differ to the extent implied by the hon. Gentleman. We will publish full details in the proposed Bill and in the accompanying licence of the various obligations that will be placed on the competitor companies to British Gas. I am sure that the hon. Gentleman will be reassured by that information. I know that his party is in favour of gas competition and I look forward to working with him.

Mr. Wilson

The country is now well aware that the chief executives of British Gas have awarded themselves grotesque pay rises. The chief executive has been awarded an increase of £205,000 a year. Will the Minister confirm that, by remarkable symmetry, in the current year his Department has cut the grant to the Gas Consumers Council by £209,000? Will he further confirm that there could be no more eloquent commentary on the concern felt by his Department and the Government for the consumer as opposed to their worship of private greed?

Mr. Eggar

Why does not the hon. Gentleman pay credit to British Gas for a reduction of 23 per cent. in real gas prices? Why does he not follow the line taken by the shadow energy Minister, who has welcomed the Government's announcement about ending British Gas's monopoly, which will therefore increase the benefits of competition that will be enjoyed by consumers?

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