§ Mr. Skeetasked the Secretary of State for Energy whether it is intended that the freeze on prices and made in reference to firm contracts in the Budget should also be extended to interruptible arrangements; and what is the position about quarterly price increases.
§ Mr. Norman LamontAs my right hon. and learned Friend the Chancellor of the Exchequer indicated in his Budget Statement, the British Gas Corporation has agreed that renewal prices for all gas purchased on contract by industrial customers will be held at their present levels until 1 December 1981. This applies to both firm and interruptible supplies. The existing provision for price escalation of 1 penny per therm per quarter in firm gas contracts will not be applied in the period to 1 December 1981. The existing arrangement of a single 1 penny per therm increase in respect of interruptible supplies after the first three months will, however, continue.