§ Sir David Priceasked the Secretary of State for Energy if he will publish in the Official Report the statistical basis for his assertion on 15 November, Official Report, c. 4, that the total abolition of standing charges for the supply of gas and electricity, respectively, would lead to an increase in unit charges of 15 per cent.
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§ Mr. MellorIf standing charges were removed from domestic tariffs, the industries would not forgo the revenue but would need to recoup it through increasing the unit rate. The Electricity Council and the British Gas Corporation calculated the consequent necessary increase in the unit rate by comparison with the tariffs currently in operation. Assuming that a flat-rate tariff were adopted and there was no significant resulting change in consumption, these calculations showed that the increase in unit rate would need to be around 15 per cent.