§ Mr. Greenwayasked the Secretary of State for Energy whether he expects to take steps to reduce the level of North Sea oil production in line with the falling level of United Kingdom oil consumption.
§ Mr. GrayI refer my hon. Friend to the statement on the Government's oil depletion policy made by my right316W hon. Friend the Secretary of State for Energy on 23 July 1980 in answer to my hon. Friend the Member for Bristol, West (Mr. Waldegrave).
§ Mr. Adleyasked the Secretary of State for Energy what is his latest forecast of energy prices over the next 12 months.
§ Mr. David HowellI am unable to predict oil price movements over this period, which remain subject to considerable uncertainties and have an important influence on the prices of other fuels. United Kingdom prices for these fuels are a matter for the energy supply industries concerned.
It is not yet clear when the National Coal Board will be reviewing coal prices during the coming year, but domestic coal prices will be subject to a summer discount. Details will be announced shortly.
British Gas has announced that the levels at which industrial gas contracts are being renewed are being held until 1 December. For domestic consumers, prices rose by 15 per cent. on 1 April and there will be a further increase of 10 per cent. in October.
Electricity prices were increased with effect from 1 April and no further increases are at present planned. As a result of that price revision, domestic prices will increase by an average of 11 per cent. over the next full year. The industrial price increase averages nearly 7.5 per cent. on basic rates, with a further 8 per cent. likely to be added during 1981–82 through the operation of the fuel cost adjustment. The industrial price increase quoted does not take account of the additional flexibility being offered by area boards to some of their large consumers.