HL Deb 30 March 1977 vol 381 cc893-5

3 p.m.

Lord HAWKE

My Lords, I beg leave to ask the Question which stands in my name on the Order Paper.

The Question was as follows:

To ask Her Majesty's Government whether they will do their utmost to ensure that the substantial cut by CEGB in their charge to the Area Boards for off-peak electricity, operative from 1st April, is passed on in full by the Area Boards to the consumer.

Lord STABOLGI

My Lords, I understand that Boards' off-peak tariffs from 1st April, which include reductions in basic night rates, will take full account of the reduction in the night rate in CEGB's bulk supply tariff. This rate applies only to a defined level of consumption; other night units are charged at a higher rate.

Lord HAWKE

My Lords, while thanking the noble Lord for that moderately satisfactory reply, may I ask whether he is aware that, if the Central Electricity Generating Board want to get a more balanced load, they will have to decrease their night tariff still further, because people are finding it very expensive to keep night storage heaters running?

Lord STRABOLGI

My Lords, the basic night rates on white meter tariffs and most night-only tariffs will be reduced on average by 4½ per cent. for the 8 to 10 hours rate and by 9 per cent. for the 6 and 7 hours rate. This reduction which affects consumers' bills from July may be obscured by the increase in the fuel cost adjustment.

Lord HAWKE

My Lords, arising from that answer, may I ask whether I am right in thinking that the CEGB prices are going down by 15 per cent.? If so, why is there so small a reduction reflected in the Area Board's prices?

Lord STRABOLGI

My Lords, this rate is related to system costs at a time when the demand on the generating system is at the minimum. It applies during other periods of the night only up to the level of the Board's consumption at the minimum. Demand above that attracts the standard rate.

Lord HARMAR-NICHOLLS

My Lords, is the noble Lord aware that, despite the detailed figures which have just been given, people who invested in night storage heaters when they were offered the concessions feel that some of those decisions have not been honoured as completely as they might? If good will is to be returned, perhaps the noble Lord's right honourable friend will have to look to see whether or not he can honour what was an undertaking at the beginning of this night storage scheme.

Lord STRABOLGI

My Lords, I will pass on what the noble Lord has said to my right honourable friend. Tariffs are, by Statute passed by Parliament, a responsibility of the electricity boards. With regard to night tariff rates, they have been considerably reduced. But, with regard to the possible increases in coal, the rates may have to go back to the price at present. The day rate, I am afraid, will have to go up.

Lord SHINWELL

My Lords, is not the noble Lord's answer somewhat ambiguous? The consumer will have no reduction at all. Does the noble Lord recall that a few weeks ago the noble Lord, Lord Ferrier—and I do not think he is present now—initiated a debate on this question and received a definitive assurance from the Minister replying for the Government that the CEGB would be compelled to have regard to the needs of the consumers who had been promised a reduction if the general charge of the electricity supply suffered a reduction?

Lord STRABOLGI

My Lords, the basic rates in these tariffs—and these are off-peak tariffs which include a daytime period—which are affected by increases in other rates in bulk supply tariff as well as by a reduction in the night rate, will be unchanged; but as I have said, the first bills at the new rates, from July, will be affected by an increase in the fuel cost adjustment expected at that time.