§ Lord Houghton of Sowerbyasked Her Majesty's Government:
What is the approximate amount of the indirect subsidy to the National Coal Board being paid by the General Electricity Generating Board for home produced coal purchased at higher than world 248WA prices, and what progress is being made in obtaining cheaper rates for electricity consumers.
§ Lord Gray of ContinThe coal supply arrangements between the Central Electricity Generating Board (CEGB) and British Coal are a commercial matter for the two boards, which have recently reached an agreement which takes due account of the recent fall in the price of oil. As a result of this agreement, the Electricity Council is recommending a reduction of some 3.5 per cent. on the unit rate for domestic consumers, with those on Economy 7 benefiting even more. The average reduction for industrial consumers is likely to be 5 per cent. (7 to 8 per cent. for those on Contracted Load terms).