HC Deb 25 February 1997 vol 291 cc168-9W
Mr. Battle

To ask the President of the Board of Trade to what extent prices for(a) electricity and (b) gas have fallen in real terms for residential users since privatisation; and what have been the trends in prices in other EU countries over the same period. [16903]

Mr. Page

Annual average domestic electricity prices fell by 2.5 per cent. in real terms—9.5 per cent. excluding VAT—between privatisation, in 1990, and 1996. In addition, domestic customers received a discount of £50 during 1996 following the privatisation of the National Grid Company. Between privatisation, in 1986 and 1996 annual average domestic gas prices fell by 20 per cent. in real terms—26 per cent. excluding VAT. Further, domestic gas consumers in the south-west, who have switched supplier following the introduction of competition, will see additional reductions of up to 20 per cent. over the first full year of competition.

Domestic electricity prices in the UK are among the lowest in the European Union on a common sterling basis. Between 1990 and 1995, the latest year for which full data are available, the movement in real domestic electricity prices in the EU has varied from a 27 per cent. fall to a 15 per cent. increase—a 27 per cent. fall to a 9 per cent. rise excluding taxes. In this period, UK prices rose by around 0.5 per cent. but fell in 1996 by 3 per cent. Domestic gas prices in the UK were the lowest of major EU competitors in 1995, only Luxembourg and Finland had lower prices. Movements in real domestic gas prices in the EU between 1986 and 1995 have varied from a 51 per cent. fall to a 26 per cent. rise—falls of 51 to 18 per cent. excluding tax.

Detailed data including taxes are provided in the tables.

Source:Retail price index; Office for National Statistics. International Energy Agency.

Average domestic gas prices within the EU, including all taxes
Country1 Pence/k Wh2 National currency/k Wh3 (cash terms) National currency/k Wh3,4 (real terms) /tea/ change 1986–1995 (per cent.)
1986(a) 1995(b) 1986(c) 1995(d) 1986(e) 1995(f) (e)to(f)
Greece n/a n/a n/a n/a n/a n/a n/a
Portugal n/a n/a n/a n/a n/a n/a n/a
Sweden n/a n/a n/a n/a n/a n/a n/a

Notes:

1Countries ranked in ascending order by 1995 price in pence/k Wh.

2 Prices converted to pence/k Wh using average exchange rates for 1986 and 1995.

3urrencies used are as follows: Austria (Schillings). Belgium (Belgian Francs), Denmark (Crowns), Finland (Finnish Marks), France (French Francs), Germany (Marks), Greece (Drachmae), Ireland (Irish Pounds), Italy (Lire), Luxembourg (Luxembourg Francs), Netherlands (Guilders), Portugal (Escudos), Spain (Pesetas), Sweden (Swedish Crowns), UK (Pence).

4Prices have been converted to real terms by deflating national currency data (columns C and D) by each countries GDP deflator at market prices.

5 GDP deflator not available. All items consumer price indices used to deflate to real terms instead. n/a denotes not applicable. There is no or only very limited gas supply in Greece, Portugal and Sweden.

Source:

International Energy Agency.

Average domestic electricity prices within the EU, including all taxes
Country1 Pence/k Wh2 National currency/kWh3 (cash terms) National currency/kWh3,4 (cash terms) Real change 1990–95 (per cent.)
1990(a) 1995(b) 1990(c) 1995(d) 1995(e) 1990(f) (e) to (f)
Sweden 4.934 5.984 0.520 0.674 0.520 0.568 +9.29
Finland 5.780 6.888 0.393 0.475 0.393 0.432 +9.88
Greece5 6.636 7.209 18.736 26.346 18.736 13.729 -26.72
UK 6.670 8.060 6.670 8.060 6.670 6.717 +0.70
Ireland5 7.500 8.371 0.081 0.082 0.081 0.073 -9.80
Netherlands 6.583 8.610 0.213 0.218 0.213 0.195 -8.58
Luxembourg5 6.965 9.267 4.140 4.310 4.140 3.754 -9.32
France 8.434 10.563 0.817 0.832 0.817 0.745 -8.82
Italy 8.809 10.723 187.90 275.70 187.90 215.73 +14.81
Austria6 8.745 10.882 1.770 1.900 1.770 1.641 -7.30
Portugal 8.268 11.448 20.976 27.090 20.976 18.242 -13.03
Belgium5,6 9.576 11.502 5.692 5.880 5.692 5.288 -7.10
Spain 10.676 12.366 19.354 24.325 19.354 18.668 -3.54
Germany 9.204 12.960 0.265 0.293 0.265 0.245 -7.56
Denmark 9.242 13.221 1.018 1.169 1.018 1.065 +4.64

Notes:

1 Countries ranked in ascending order by 1995 price in pence/kWh.

2 Prices converted to pence/kWh using average exchange rates for 1990 and 1995.

3Currencies used are as follows: Austria (Schillings), Belgium (Belgian Francs), Denmark (Crowns), Finland (Finnish Marks), France (French Francs), Germany (Marks), Greece (Drachmae), Ireland (Irish Pounds), Italy (Lire), Luxembourg (Luxembourg Francs), Netherlands (Guilders), Portugal (Escudos), Spain (Pesetas), Sweden (Swedish Crowns), UK (Pence).

4Prices have been converted to real terms by deflating national currency data (Columns C and D) by each country's GDP deflator at market prices.

5 GDP deflator not available. All items consumer price indices used to deflate to real terms instead.

61995 data not available. 1994 data used instead.

Source:

International Energy Agency.