§ Mr. Mike Thomasasked the Secretary of State for Energy (1) whether, taking inflation into account, the price of gas to small consumers, say those consuming less than 500 therms per annum, will increase or decrease in real terms overall as a result of the increased tariffs to take effect from 1st January 1975; and by what amount;
(2) whether, taking inflation into account, the price of gas to large domestic consumers, say those consuming over 500 therms per annum, will increase or decrease in real terms overall as a result of the increased tariffs to take effect from 1st January 1975; and by what amount;
(3) whether, other than through the general effect of a price increase, the increased gas tariffs to take effect from 1st January 1975 are estimated to encourage energy conservation by large domestic consumers compared with the present tariffs, and in what specific regard;
(4) whether the increased gas tariffs to take effect from 1st January 1975 will bear relatively less heavily on small consumers and poor consumers than on large consumers than the present tariffs; and in what specific regard.
§ Mr. VarleyThe latest retail price index for mid-November shows a rise of 15.2 per cent. since January 1974, when domestic gas tariffs were last increased. The new tariff increases will average 12 per cent. The effect varies somewhat from region to region, but the general picture is that under the new tariffs bills will decrease for some small prepayment consumers and for most consumers using gas solely for cooking will increase by less than 12 per cent. The greater part of the increased revenue will be raised by above-average increases for the larger domestic gas consumers, the percentage rising progressively with higher consumption. The larger consumer has the greatest opportunity to economise in his use of gas and significant increases in running rates under the larger user tariff will provide a particular incentive to do so.