HC Deb 21 November 1974 vol 881 c503W
Mr. Skeet

asked the Secretary of State for Energy what price increases would now be required to produce in 1975–76 a surplus equivalent to 2 per cent. of the turnover or 10 per cent. of the net assets of the electricity, gas and coal industries.

Mr. Varley

2 per cent. of turnover at present prices or 10 per cent. of the estimated net assets—less interest charges—at 31st March next would equate roughly to £60 million and £120 million respectively in the case of the electricity boards in England and Wales and £25 million and £45 million in the case of the British Gas Corporation. In the case of coal, to which this provision in the draft Price Code has no direct application, the figures would be £32 million and £7 million. The extent of price increases above present levels which would be required to produce such results would of course depend on the timing of the increases and the movement of costs.

Back to