§ Mr. Harry Ewingasked the Secretary of State for Energy if he expects the British Gas Corporation to be able to meet all demands for gas up to the end of 1974.
§ Mr. VarleyThe gas industry has more than trebled its output in the seven years since North Sea gas first became available, and further growth is expected even before gas from the new fields comes in and the related developments of the transmission and distribution system are complete. Recent market trends arising directly from the world energy situation have, however, greatly increased the attractiveness of gas, particularly for commercial and industrial users, and I am satisfied that if at this stage the corporation were obliged to meet demands for large new or additional supplies in full, this would endanger security of supply to other gas users, whether in particular districts or more generally.
I have therefore given the corporation authority, under Section 4 of the Fuel and Electricity (Control) Act 1973, to disregard or fall short in discharging any obligation under the Gas Act 1972 to give a new or increased supply of gas where this would result in the supply to the premises exceeding 25,000 therms per annum. The authorisation has no effect as regards the overwhelming majority of present and potential gas users whose needs are well below that figure and will certainly be met, or as regards existing rates of supply to any user. Nor does it prevent the corporation 88W from meeting new demands for larger quantities, where it judges this to be practicable without endangering supplies to other users.
I shall keep under review the continuing need for the authorisation in the light of reports which I have directed the corporation to make on its use of it.