§ Mr. Rostasked the Secretary of State for Energy whether he will announce any change to the British Gas Corporation's financial target on account of the levy to be imposed upon the corporation in respect of gas not subject to petroleum revenue tax.
§ Mr. David HowellI have agreed with the British Gas Corporation a revised financial target, expressed as an average annual rate of return to be achieved over the period April 1980 to March 1983, of 3½ per cent. on net assets valued at current cost. This target is related to current cost operating profit after taking account of depreciation but before interest and tax, and is subject to passage of the Gas Levy Bill. The revised target reflects the forecast effects of the proposed rates of levy and of the new current cost accounting standard on the target of 9 per cent. that was set on 16 January 1980. This revision of the target will not therefore affect industrial or domestic gas prices.