HC Deb 08 March 1978 vol 945 cc672-3W
Mr. Skeet

asked the Secretary of State for Energy (1) by how much the price of gas would have to be raised per therm to make the following fuel competitive with it in the domestic heating market; (a) coal, (b) electricity and (c) oil;

(2) what is his estimate of the cost to the domestic consumer if parity pricing was adopted for coal, gas and electricity.

Dr. John Cunningham

It is not possible to provide concise or meaningful estimates of the price or cost changes requested. The relative prices of different fuels to the domestic consumer depend on the quantity of fuel consumed and on where the consumer resides. Competition between fuels depends not only on prices but on availability, and on the type, capital costs and thermal efficiencies of consumers' heating appliances. For background information, I would refer the hon. Member to the answer given to his previous Question on 28th February 1978.—[Vol. 945, c. 176–78.]

Mr. Skeet

asked the Secretary of State for Energy at what date he estimates the price of natural gas under existing agreements negotiated with suppliers will reach on average 8.4p per therm.

Dr. J. Dickson Mabon

Prices differ for different fields, as do escalation provisions in the supply contracts. It is not possible to predict exactly how much gas will be taken from each field or what the movements will be in exchange rates and in the indicators which affect the operation of the escalation clauses in the contracts. In these circumstances, the best estimate which my Department can make is that the average beachead price may reach 8.4p per therm in the early 1980s.

Mr. Skeet

asked the Secretary of State for Energy what has been the percentage increase in domestic gas prices between 1964 and 1977 and a similar percentage for sales of industrial gas over the same period.

Dr. John Cunningham

The percentage increases in question have varied according to the region and level of consumption. In the hon. Member's constituency, the increase for a domestic consumer using 500 therms a year—roughly the present national average—would have been 120 per cent.; and for an industrial consumer using 100,000 therms a year on the basic non-domestic tariff, 96 per cent. For the many consumers who have substantially increased their use of gas over that period, the increase has, however, been much lower; the industry's average revenue per therm sold, which reflects the large rise in average consumption and in the number of very large users, was only 30 per cent, higher in 1976–77 than in 1964–65.

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