§ Mr. BurdenTo ask the Chancellor of the Exchequer what is his estimate of the amount of the expected rebate to domestic consumers arising from the sale of the national grid which will be accounted for by reduced VAT(a) per customer and (b) in total. [3389]
§ Mr. Heathcoat-Amory[holding answer 4 December 1995]: Eligible customers will each receive a net rebate of £50.56 from the regional electricity companies and as a consequence the amount of VAT on their bills will be reduced by £4.04. For the comparatively small number of customers who use pre-payment meters or tokens a VAT-inclusive refund of £54.60 will be made. The total reduction in VAT revenue resulting from the rebates will be approximately £87 million.