§ Mr. Skeetasked the Secretary of State for Energy what are the cash limits of the British Gas Corporation; and when he is expecting to announce by how much these will be adjusted to accommodate an easing of prices for new customers.
§ Mr. Norman LamontThe corporation's external financing limit for 1980–81 is minus £400 million, as announced by my right hon. Friend the Chief Secretary on 16 November 1979. The EFL for 1981–82 has not yet been announced. Any change in the corporation's external financing requirement in consequence of an easing of new contract prices would have it main effect in 1981–82 and would be taken into account in setting the EFL for that year.
§ Mr. Skeetasked the Secretary of State for Energy why he proposes to adjust the cash limits of the British Gas Corporation to accommodate lower prices for new contracts when the corporation's purchase price for natural gas from the United Kingdom continental shelf is especially favoured under section 8 of the Energy Act 1976.
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§ Mr. Norman LamontAny reduction in the British Gas Corporation's selling price for new gas supplies would reduce its revenues. The cost of its gas supplies would, however, remain unchanged. The consequent reduction in its profits would reduce its cash flow and this will be reflected in its external financing requirement.
§ Mr. Skeetasked the Secretary of State for Energy how he intends to use the proceeds of the levy which he proposes to impose upon the British Gas Corporation.
§ Mr. Norman LamontNo final decisions have been taken on the details of the levy.