asked the Secretary of State for Energy on what assumption he bases his calculation that long-term industrial contracts for the supply of natural gas would produce an extra revenue of £180 million for the British Gas Corporation if renegotiated at higher prices.
The estimate was based on the assumption that the amount of gas involved this year in contracts yet to fall due for revision could be sold at prices related to those of competing fuels. Of course, the amount of gas involved is falling rapidly as contracts come up for renewal.
asked the Secretary of State for Energy how many long-term industrial contracts for the supply of natural gas have been entered into by the British Gas Corporation (Gas Council) in each year since 1968; how many of the contracts entered into in each year (a) run for periods of five years or less, six to 10 years, 11 to 15 years and 16 years or more, respectively (b) are at a price which is less than one quarter, one quarter to one half, one half to three-quarters, over three quarters, respectively, of current prices for such contracts (c) are for less than 1 million, 1 million to 50 million, 51 million to 100 million, 101 million to 500 million, 501 million to 1,000 million, 1,000 million and over therms per annum, respectively, and (d) contain escalation or break clauses which allow the Corporation to increase prices to or near current levels.
This is a matter for the British Gas Corporation, and I am asking the Chairman to reply to my hon. Friend.