§ Mr. Kenneth Clarkeasked the Secretary of State for Energy what has been the comparison between the costs of gas, electricity and coal as alternative fuels to (a) the domestic, and (b) the industrial consumer in each of the last 10 years.
§ Dr. J. Dickson MabonFigures on average prices of fuels used by industry expressed in original units and in pence per therm are published in Table 85 of the "Digest of UK Energy Statistics". Corresponding quarterly figures in original units are published in "Energy Trends". Copies of both publications are available in the Library of the House. For convenience, figures for the last 10 years in pence per therm, and figures for fuels sold to domestic consumers, are given below.
It should be borne in mind that the costs of fuels depend, among other things, on the location of the consumer, the amounts purchased and the patterns of consumption through time. Comparisons are further complicated by differences in the uses made of the energy contained in the respective fuels (lighting, heating, motive power, etc.) and in the efficiencies at which the fuels can be used, costs of purchasing, installing, maintaining and operating equipment, any storage costs, relative reliability of supply and relative convenience of different fuels for particular uses.
Temporal trends in energy prices were discussed in an article published in the November issue of "Economic Trends". 637W a copy of which is available in the Library of the House. I am sending an offprint of the article to the hon. Member.
Prices of fuels used by industry (pence/therm) Gas* Electricity Coal 1966 … 6.7 18.0 2.2 1967 … 6.6 18.5 2.1 1968 … 6.7 18.9 2.1 1969 … 5.8 18.9 2.1 1970 … 4.5 19.2 2.5 1971 … 3.3 21.1 3.0 1972 … 3.0 21.6 3.2 1973 … 3.1 21.7 3.4 1974† … 3.0 27.3 3.7 1975 … 4.3 36.3 5.5 1976‡ … 5.7 41.8 6.4 * Up to 1973, years ended 31st March of following. The figures reflect changes in the structure of the market stemming from the introduction of large contracts, but do not fully reflect the prices charged under new contracts. † Up to 1973 gas and electricity prices were average selling values to industrial consumers, coal prices were assessed as typical industrial prices (delivered). From 1974 prices have been calculated from information provided by a panel of about eight hundred large fuel consumers within manufacturing industry so that the figures are not strictly comparable with those for 1966 to 1973. ‡ Averages for four quarters ended September 1976.
DOMESTIC FUEL PRICES Gas* Electricity† (pence/therm) Coal‡ 1966 … 10.6 23.3 3.7–5.0 1967 … 10.3 23.1 3.5–5.0 1968 … 10.9 26.0 3.8–5.2 1969 … 10.7 25.1 4.1–5.6 1970 … 10.6 24.6 4.6–6.7 1971 … 11.1 26.4 5.1–7.4 1972 … 11.2 28.0 5.5–7.9 1973 … 11.0 28.4 5.5–8.1 1974 … 11.6 33.9 6.7–10.1 1975 … 14.4 49.1 9.0–12.6 1976 … 15.4§ 60.1§ 10.9–16.1 * Average selling values for years ending 31st March of following year. † Average selling values. ‡ Range of prices prevailing in December of each year, variation in prices according to geographical location. § Average selling values for four quarters ended September 1976.