§ 22. Mr. Home Robertsonasked the Secretary of State for Scotland if he will make a statement on the cost of electricity to consumers in Scotland.
§ Mr. Allan StewartThe setting of electricity tariffs is a matter for the electricity boards themselves. My right hon. Friend has no powers to intervene and has not pressed the boards to increase their prices.
The tariff increases announced last month by the Scottish electricity boards are the first price rises in Scotland since April 1982. Other costs have increased in the meantime and the boards consider that the increase is needed to meet these additional costs. The increases are below the rate of inflation, and follow a tariff freeze in April 1983 and increase below the rate of inflation in both 1981 and 1982. Electricity prices in Scotland have therefore fallen in real terms in recent years.
Scottish tariffs are generally lower than in England and Wales and this will still be the position after this year's increase. Domestic tariffs will on average be about 12 per cent. lower and the majority of industrial consumers will have better terms than their counterparts south of the border.