HC Deb 09 December 1983 vol 50 c273W
Mr. David Howell

asked the Secretary of State for Energy whether he will publish any information available to him showing the average landed cost in pence per therm of natural gas being paid by the major gas utilities in France, West Germany, and Belgium for gas from the North sea continental shelf.

Mr. Peter Walker

Beach or border prices for supplies of gas from the North sea to continental gas utilities are kept confidential by the contract parties. There is, of course, occasional press speculation about individual contract prices, but I have no information which would enable me to confirm such reports.

Mr. David Howell

asked the Secretary of State for Energy what estimates have been made of the effects on (a) prices for landed gas to the British Gas Corporation and (b) prices to the United Kingdom consumer, of allowing gas from the United Kingdom continental shelf to be sold direct to other European gas utilities.

Mr. Peter Walker

The prices for landed gas under existing contracts would be unaffected by any decision to allow direct exports of gas. The effect on prices negotiated by BGC for new supplies would, in these circumstances, depend on the state of the European gas market at the time and on other factors such as the proximity of particular sources of supply to the alternative markets. We have made clear that if the fresh impetus which our policies are giving to exploration results in large new volumes of gas being discovered, the question of exports will be reconsidered.

The price of gas to the British consumer depends on a variety of factors; whether, if gas exports were allowed, this would have any effect is uncertain.

Mr. David Howell

asked the Secretary of State for Energy what are the current principles underlying Government policy towards the pricing of gas to the consumer.

Mr. Peter Walker

The Government believe that energy prices should, wherever possible, be set by competitive market forces. Where competition is limited, as in the case of gas, prices should reflect the cost of maintaining a supply on a continuing basis and the need to achieve an adequate return on capital.