HC Deb 24 January 1994 vol 236 c2W
Mr. Steen

To ask the Chancellor of the Exchequer to what extent and in what circumstances VAT will be added to service charges in respect of the supply of energy.

Sir John Cope

Certain services associated with the supply of energy, for example maintenance of appliances and pipes on the consumer's side of the meter, are already subject to the standard rate of VAT. Other services which are currently seen as an integral part of the supply of energy, such as meter rental and disconnection and reconnection services, will continue to follow the liability of the fuel and for domestic consumers will therefore be subject to 8 per cent. VAT from 1 April 1994 and the standard rate from 1 April 1995. First-time connection to the gas and electricity mains will, however, continue to be relieved for VAT.