HC Deb 17 January 1996 vol 269 cc739-40
18. Mr. Canavan

To ask the President of the Board of Trade if he will meet the chairmen of the privatised utilities to discuss fuel supply. [7906]

Mr. Eggar

I have no present plans to meet the chairmen of the privatised utilities.

Mr. Canavan

When the Minister eventually gets round to meeting them, will he discuss the widespread incidence of fuel poverty? Although the chairmen may say that there has been a decrease in fuel disconnections by the fuel companies in recent years, there has been an increase in self-disconnection by people who simply cannot afford to pay their fuel bills, including pensioners who are at risk of hypothermia, especially during severe weather such as that recently experienced in Scotland. Will the Minister urge his ministerial colleagues to reduce VAT on domestic fuel and introduce a much fairer system of cold weather payments to help to eradicate fuel poverty?

Mr. Eggar

I am grateful to the hon. Gentleman for the tribute that he has paid to the privatised utilities for the way in which they have reduced significantly the number of cut-offs of domestic consumers. A number of the English regional electricity companies have not cut off any individual consumer now for some months. I am sure that the hon. Gentleman would also be the first to pay tribute to the Government and the electricity companies for the introduction in England and Wales of the £50 rebate as a result of the flotation of the National Grid. That will be welcomed by many electricity consumers—those well-off and those less well-off.

Mr. Jacques Arnold

What has been the reduction in the real cost to consumers of gas and electricity since privatisation?

Mr. Eggar

Gas prices have fallen by about 23 per cent. in real terms since privatisation. Customers can look forward to further significant reductions as a result of the introduction of competition in gas. The latest offer being made to consumers in the south-west gas trial area is a further reduction of 25.2 per cent., as against the British Gas standard tariff, if they sign up and buy gas from one particular company. That is as a result of the introduction of competition and the sustained Government policy of privatisation and giving choice to consumers.