§ Mr. Andrew F. Bennettasked the Secretary of State for Energy what is the likely impact of the ending of compensation for price restraint to the gas, electricity and coal industries on the weekly budgets of (a) low income families and (b) pensioners.
§ Mr. Benn,pursuant to his reply [Official Report, 26th February 1976; Vol. 906, c. 329], gave the following information
The coal industry has not received any compensation for price restraint, and compensation to the gas and electricity industries has not been related to the reduction of prices to particular categories of consumers. However, in the case of gas the £41.5 million compensation paid in respect of 1973–74—compensation for 1974–75 has not yet been authorised—was equivalent to 5 per cent. of total revenue from gas sales, and that percentage of the average domestic gas bill was then equivalent to approximately 4 pence per week. In the case of electricity the maximum sum of compensation paid—£257.6 million—was in relation in 1974–75. This was equivalent to 10½ per cent. of total revenue from electricity sales in England and Wales—approximately 12 pence per week as a percentage of the average domestic electricity bill at that time. It is not possible to deduce even roughly from these figures the impact of phasing out subsidies on low income families and pensioners because, quite apart from regional variations in the level of price increase, the effect will vary widely depending on consumption levels and the type or types of fuel used.