Vol. 370 No. 3
asked the Minister for Energy the reason there has been only one small decrease in the price of electricity notwithstanding the very substantial reduction in the landed cost of oil this year; and if he will now take steps to bring our electricity prices into line with those in other European countries.
29.
asked the Minister for Energy if he has any plans to reduce the cost of electricity because of the continuing low price of crude oil and the weak exchange rate position of sterling and the US dollar.
I propose to take Questions Nos. 13 and 29 together.
On 11 March last I announced electricity price reductions which, as I stated at that time, were based on the savings which it was estimated would accrue to the ESB in the year ending December 1986. Increased use of coal, reduced oil prices and favourable interest and exchange rates were expected to yield a surplus of approximately £30 million in the year. All of this projected surplus was allocated to giving considerable price reductions to electricity consumers.
It is not at present possible to say whether changes in the ESB's situation since March will increase or decrease the surplus then projected. However, any opportunity which arises for further reductions will be taken.
