§ Mr. Stallardasked the Secretary of State for Energy if he will now publish the results of the review of the impact of standing charges on low income consumers announced by the Under-Secretary of State for Health and Social Security on 25 January 1982, Official Report, c. 657; and if he will make a statement.
§ Mr. GrayMy right hon. Friend the Secretary of State for Energy proposed that gas and electricity standing charges should be limited to a maximum of half of any bill This suggestion has been adopted by the British Gas Corporation and almost all area electricity boards. About 1 million gas consumers and 2 million electricity consumers are benefiting, about half of them pensioners.
In addition, the Government asked the industries to commission independent studies of the level of standing 323W charges. Copies of the reports on gas standing charges have been placed in the Library of the House. I expect the Electricity Council to publish the results of the studies on electricity standing charges soon.
Following the undertaking by my hon. Friend the Under-Secretary of State for Transport, then Under-Secretary of State for Health and Social Security, the Government held discussions on standing charges with the two industries and with consumer representatives. The participants agreed, as the previous Administration had also concluded in 1976, that none of the alternatives to the current structure of charges had significant advantages over the present system, but they could have severely adverse consequences for many poor consumers, particularly those who already face the largest bills. Nor would the benefits to those who gained from any of the alternatives be clearly related to need.