§ Mr. Leighasked the Secretary of State for Energy whether he will make a statement on the recent performance of British Gas in relation to profits and standing charges.
§ Mr. Peter MorrisonPrivatisation has brought new opportunities to the company and reinforced incentives for efficiency to the benefit of customers and shareholders alike. British Gas has announced profits on an historic cost basis of £1,293 million before tax.
At the same time, a 4.5 per cent. tariff reduction has been announced, with both rates per therm and standing charges being reduced.
The reduction passes on to tariff customers the lower gas purchase prices now forecast by British Gas, as well as efficiency gains, as required by the new regulatory system whose operation is monitored by OFGAS.