§ Mr. FrenchTo ask the Secretary of State for Energy if, when he next meets the chairmen of electricity boards, he will urge them to abolish standing charges on electricity bills for pensioner customers.
§ Mr. Michael SpicerStanding charges are a matter for the electricity industry. They cover the cost of providing a connection to the distribution network, as well as all aspects of customer services, including those of meter reading, accounting and billing. These costs arise no matter how much or how little electricity is used. They reflect the fixed costs which the electricity supply industry incurs in maintaining a constant and safe supply to each customer's home. Abolition of standing charges would increase the unit rate.
I do not, therefore, believe that the abolition of standing charges on electricity bills for pensioner customers would be in the interests of customers as a whole.
§ Mr. FrenchTo ask the Secretary of State for Energy if, when he next meets the Director-General of Gas Supply, he will seek the abolition of standing charges on gas bills for pensioner customers.
§ Mr. Peter MorrisonNo. Standing charges for gas are subject to the conditions of British Gas's authorisation as a public gas supplier.