§ Mr. ThurnhamTo ask the President of the Board of Trade how much the price of electricity has increased or decreased in real terms since privatisation in each of the regional electricity companies.
§ Mr. Charles WardleThe percentage changes in real terms in the price of electricity for domestic consumers558W between 1989 and 1994 in each of the regional electricity companies are shown in the following table.
Percentage change between 1989 and 1994 on average household bill (excluding VAT)1.2 Regional electricity company Standard tariff Economy 7 tariff East Midlands Electricity -2.3 -1.4 Eastern Electricity -4.4 -4.8 London Electricity -6.8 -3.3 Manweb -5.4 -3.5 Midlands Electricity -9.7 -4.7 Northern Electricity +0.7 -0.7 Norweb -7.1 -5.9 Seeboard -6.9 -5.8 South Wales Electricity +2.0 +1.5 South Western Electricity -1.0 +0.2 Southern Electricity -3.1 -1.9 Yorkshire Electricity -9.3 -5.5 1 Based on the assumption that the average household consumes 3,300 kWh of electricity per year on the Standard tariff and 6,600 kWh (3,000 day units and 3,600 night units) on the Economy 7 tariff. Standing charges are included as are any lump sum rebates made in 1994. No account has been taken of discounts given by the regional electricity companies for direct debit or similar methods of payment. 2 Real terms prices are calculated using the GDP (market prices) deflator. VAT has been excluded from the above figures. This tax, at 8 per cent. was imposed from 1 April 1994, but an unspecified number of consumers paid in advance and will not have paid any VAT during 1994.
The average price of electricity to industrial consumers in the United Kingdom decreased, in real terms, by 12.4 per cent. between 1989 and 1994. Details of prices charged to industry by individual companies are commercially confidential.