§ Mr. Walter Johnsonasked the Secretary of State for Energy if, in order to enable the Gas Corporation and the Electricity Council to hold their prices at the same level for the next 12 months, if he will take steps to reduce their financial targets.
§ Mr. Benn, pursuant to his reply [Official Report, 12 February 1979; Vol. 962, c. 427], gave the following further information:
As indicated in the announcement of 22 December, the Government considered a number of factors in setting the targets, in particular the need to strike a balance between the requirements of counter-inflation policy and energy policy against the background of the world oil situation. Taking account of all these factors, the Government considered that it would not be sensible that electricity and gas prices should fall in real terms for the coming financial year. It is the responsibility of the relevant boards to determine their tariff proposals in accordance with these targets and to submit them to the Price Commission.