HC Deb 01 March 1989 vol 148 cc189-90W
Mr. Michael Brown

To ask the Chancellor of the Duchy of Lancaster what information he has as to the price of firm gas charged to large industrial gas users in(a) the United Kingdom, (b) France, (c) Spain, (d) Luxembourg, (e) Belgium, (f) Italy, (g) West Germany and (h) Holland; what is the price per therm in each of these countries; and what effect any disparity in these figures has upon British industry's competitive position in the European Community, the world and in the United Kingdom.

Mr. Maude

I refer my hon. Friend to the recent study by the Office of Gas Supply "The EEC Industrial Gas Market" for data on the six main gas-consuming countries of the EEC; comparable figures for Spain and Luxembourg are not available. The relative price of gas is only one of many factors affecting British companies' competitive position.

Mr. Michael Brown

To ask the Chancellor of the Duchy of Lancaster if he will make a statement about the effect that British Gas's present policies relating to the pricing of firm gas to large industrial users has upon British industry's competitiveness in(a) the European Community, (b) the world and (c) the United Kingdom.

Mr. Maude

The Monopolies and Mergers Commission report on gas (Cm. 500) indicated that British Gas's policy of extensive discrimination in the pricing of firm gas placed an arbitrary cost disadvantage on some of its large industrial users, thereby distorting competition in the markets in which they operate. Part of the action taken following publication of the report, as announced by the Secretary of State for Trade and Industry on 19 October 1988, is to require British Gas not to supply gas to any one contract customer on terms which are more or less favourable than the terms on which it supplies other contract customers with similar volumes, load factors, provision for interruptibility and other relevant conditions of supply.