§ Mr. Rostasked the Secretary of State for Energy (1) what percentage annual increase in real costs of energy he applies when judging the cost effectiveness of investment in energy conservation;
(2) if he is satisfied with his existing costing yardstick based on a 10 per cent. rate of discount when judging the cost-effectiveness of energy conservation investment: and if he has any plans to reduce the figure to 7 per cent.
§ Dr. John CunninghamThe same criteria for judging the cost effectiveness of investment in energy supply have been applied to investment in energy conservation. The precise discount rates and price assumptions used may vary from time to time, but in assessing the measures included in the December energy conservation package by 7 per cent. test discount rate was employed, together with the assumption that energy prices would double in real terms by the year 2000.