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Gas And Electricity (Price Restraint Compensation)

Volume 895: debated on Thursday 17 July 1975

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asked the Secretary of State for Energy if he proposes to compensate the British Gas Corporation and electricity boards in England and Wales for losses incurred through price restraint in the financial year 1974–75; and what powers are available to him to do so.

The British Gas Corporation and electricity boards in England and Wales have been advised that, subject to the enactment of the Statutory Corporations (Financial Provisions) Bill essentially in its present form and parliamentary approval as provided in Clause 1 of the Bill, I intend to pay compensation for price restraint in respect of the financial year 1974–75 of £42·3 million to the British Gas Corporation and £257·6 million to the electricity boards. These amounts are equal to the audited deficits which will be shown in the published revenue accounts of the bodies concerned.