§ Mr. MacShaneTo ask the Secretary of State for Trade and Industry if he will make a statement on the price paid for electricity by the United Kingdom steel industry. [139536]
§ Mr. Alan JohnsonThe Department conducts a quarterly survey of 1,200 manufacturing companies in Great Britain, the results of which are published in "Energy Trends". Data collected by the survey for Quarter 2 2000 indicate that extra large industrial users of electricity, i.e. those consuming more than 150,000 kWh per annum, pay 2.57p/kWh.
The average price of electricity for extra large industrial consumers has fallen continually in real terms over the past five years. Between Q2 1995 and Q2 2000 the average price paid by extra large industrial consumers had decreased by nearly 25 per cent. in real terms.
The New Electricity Trading Arrangements (NETA) will put significant downward pressure on electricity prices. Indeed, in anticipation of NETA, forward prices for 2001 are already 30 per cent. lower in real terms than in 1998. The programme of plant divestment by major electricity generators has also contributed to these price reductions.