HC Deb 28 July 1977 vol 936 cc561-2W
Mr. Corbett

asked the Secretary of State for Energy on what basis the fuel charge addition is calculated; what has been its rate since its introduction; and for how long is it proposed to continue it.

Mr. Eadie

The basic kilowatt-hour rates in all electricity tariffs in England and Wales include a datum fuel cost which is reviewed each year to keep it in line with movements in the general level of fuel costs. The tariffs also contain a fuel clause which provides for an adjustment, either upwards or downwards, to the basic rates, depending on the actual cost of fuel burned in power stations in the course of the year. This fuel cost adjustment clause has always been a feature of tariffs for the larger commercial and industrial customers who are billed monthly, and it was extended to all quarterly billed customers in May 1974. It would not be practicable to detail the many fuel cost adjustments both before and after nationalisation in 1948, but I am asking the Chairman of the Electricity Council to write to my hon. Friend on the recent position. The industry has no plans for ending this feature in electricity tariffs, as explained in Cmnd. 6806, the Government's Reply to the Fourth Report from the Select Committee on Nationalised Industries, Session 1975–76.

Mr. Corbett

asked the Secretary of State for Energy on what basis the standing charge is calculated by electricity boards; what is the standing charge in each electricity board area; and how this charge has increased in each of the last three years for which figures are available.

Mr. Eadie

Standing charges in some form are a feature of nearly all electricity tariffs. For the domestic customer standing charges reflect such items as meter reading, billing and other customer-related costs. For most other customers standing charges are generally based on installed load or measured maximum demand. It would not be practicable to list all such standing charges in the various electricity tariffs throughout England and Wales, but I am asking the Chairman of the Electricity Council to write to my hon. Friend about the position over the last three years.