§ Mr. Skeetasked the Secretary of State for Energy whether it is Government policy that the price of natural gas for industrial uses should be related closely to the price of competitive fuels such as oil and coal; and whether it is also the long-term policy for domestic consumers.
§ Dr. John CunninghamStatutory responsibility for setting tariffs and special contract prices rests with the British Gas Corporation, within such limits as counter-inflation law may impose. The gas industry, with Government endorsement, has adopted market-related pricing, generally by reference to the price of oil, as the appropriate basis for large industrial
ELECTRICITY USED ON WORKS AT CEGB POWER STATIONS 1972–73 1973–74 1974–75 1975–76 1976–77 Estimated value (£ million) … 56.1 64.3 102.7 123.5 145.8 Index of quantity … 100.0 97.6 100.8 95.3 100.6 It is not possible to estimate the amounts saved as a result of conservation measures, but the electricity industry has always striven to minimise its use of scarce resources.
ENERGY CONSUMPTION, NCB COAL MINING OPERATIONS 1974–75 1975–76 1976–77 Estimated value (£ million) … 61.1 79.5 92.2 Index of quantities … 100.0 94.8 90.5 Information prior to 1974–75 is not available on a comparable basis. The NCB estimates that conservation measures led to a saving of just under £2 million in both 1975–76 and 1976–77. 48W
ENERGY CONSUMPTION, PUBLIC SUPPLY GAS SYSTEM 1972–73 1973–74 1974–75 1975–76 1976–77 Estimated value (£ million) … 9.4 9.7 10.9 14.6 17.4 Index of quantities … 100.0 107.9 102.0 95.9 99.4 The BGC estimates that during the two years 1975–76 and 1976–77 conservation has led to a saving of just over £2 million in total. contracts. The complex and varied factors which enter into the proper determination of enegy prices will be a matter for continuing discussion, including discussion in the Energy Commission. I am not persuaded that it would be practicable or desirable to equate domestic gas tariffs with the cost of alternative forms of energy.