§ Mr. Edenasked the Minister of Power to what extent the financial objectives agreed under the White Paper on the Financial and Economic Obligations of the Nationalised Industries, Command Paper No. 1337, are responsible for the increased charges recently announced by the electricity boards; and to what extent these are due to other causes.
§ Mr. WoodThe difference between the average annual surpluses which the Area Electricity Boards have agreed to earn during the five-year period from 1962–63 to 1966–67 and the average surpluses which they earned during the previous five years is about 2½ per cent of revenue, calculated on the basis of revenue in 1961–62. The Boards have also to take account of other increases in costs.
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§ Mr. Edenasked the Minister of Power to what extent the requirement in paragraph 19 of the White Paper on the Financial and Economic Obligations of the Nationalised Industries to provide from revenue adequate allocations to general reserves as a contribution towards capital development, is responsible for the increased charges of the Southern Electricity Board; and what proportion of these increases is to be borne by domestic and industrial consumers, respectively.
§ Mr. WoodThe Southern Electricity Board has announced new tariffs, which will increase prices on average by about 7 per cent. The difference between the average annual surpluses which the Board has agreed to earn during the five years 1962–63 to 1966–67 and the average surpluses earned in the previous five years is about 2½ per cent. of revenue, calculated on the basis of revenue in 1961–62. The distribution of the burden of higher prices between different classes of consumers is entirely a matter for the Board to decide after consulting the Area Consultative Council and the Electricity Council.