§ Mr. Spellerasked the Secretary of State for Energy (1) what proportion of his target saving of £7 billion on the national energy bill he expects to be achieved by reduced energy demand arising from reduced industrial and commercial activity;
(2) what proportion of his target saving of £7 billion on the national energy bill he expects to be due to reduced energy demand arising from structural changes in the economy;
(3) what proportion of his target saving of £7 billion on the national energy bill he expects to be the result of reduced energy demand arising from increased energy prices.
§ Mr. Buchanan-SmithAbout 20 per cent. of our energy consumption could be saved by simply cutting out waste and using energy more efficiently. Over the whole economy at present this represents some £7 billion at 1982 prices. At the present level of activity industry and commerce alone could save £2 billion a year in this way.
Future levels of energy consumption will be influenced by the size and structure of the economy and consumers responses to energy prices and efficiency measures. It is not possible to separate out the individual effects producing the 20 per cent. energy savings. But the initiative to improve energy efficiency will help to expand industrial and commercial activity.