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Dept of Trade and Industry

Answer

Mr. MacShane: To ask the Secretary of State for Trade and Industry if he will make a statement on the price paid for electricity and gas (a) by very large consumers in the United Kingdom steel industry and (b) by their competitors in Europe. [154276] Mr. Hain: Figures are not separately available for energy prices to the iron and steel industry. In general, industrial consumers in the UK paid lower prices in real terms for electricity in 2000 than in any year since 1970. Average prices paid by industrial consumers for electricity in the UK in 1999 were seventh lowest of the 12 EU member states for which data are available. We recognise that some large industrial consumers may be paying more for electricity than their EU counterparts. In general, industrial consumers in the UK paid higher prices in real terms for gas in 2000 than in 1999, however they remain lower than in any year prior to 1996. Average prices paid by industrial consumers for gas in the UK in 1999 were the lowest of the eight EU member states for which data are available. The latest information available suggests that large industrial consumers are continuing to pay less for gas than their EU counterparts, despite the recent increases in prices. The 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 this survey for Quarter 3 2000 indicate that extra large industrial users of electricity, i.e. those consuming more than 150 GWh per annum, pay 2.54 p/kWh and that large industrial users of gas, i.e. those consuming more than 8.8 GWh per annum, pay 0.529 p/kWh. Data from Eurostat, the Statistical Office of the European Commission, for electricity and gas prices to different sizes of consumer are published twice a year in their "Statistics in Focus" publication. The latest available information for the largest consumers from this source are presented below: Natural gas prices for industry, pence per kwh _________________________________________________________________________________________________. 1 January 2000 1 July 2000 Size I4-2 (116.3 GWh Size I5 (1163 GWh p.a.) Size I4-2 (116.3 GWh Size I5 (1163 GWh p.a.) p.a.) p.a.) Belgium--National 0.66 n/a 0.84 n/a Denmark--National n/a n/a n/a n/a Germany--Dusseldorf 0.94 0.77 1.19 0.85 Spain--Madrid 0.84 0.84 1.02 1.02 France--Paris 0.83 n/a 0.97 n/a Ireland--Dublin n/a n/a n/a n/a Italy--Milan 0.84 n/a 1.05 n/a Luxembourg--City 1.08 n/a 1.34 n/a Netherlands--Rotterdam 0.82 0.65 n/a n/a Austria--Vienna n/a n/a n/a n/a Finland--National 0.86 0.72 0.96 0.75 Sweden--National n/a n/a n/a n/a UK--National 0.65 0.52 0.71 0.52 _________________________________________________________________________________________________. Notes: 1. Prices include all taxes unless refunded. Prices converted using monthly average exchange rates. 2. n/a indicates that data are not available, usually because of confidentiality issues. Source: Derived from Eurostat Statistics in Focus Electricity prices for industry, pence per kWh _________________________________________________________________________________________________. 1 January 2000 1 July 2000 Size Ih (50 GWh p.a., Size Ii (70 GWh p.a., Size Ih (50 GWh p.a., Size Ii (70 GWh p.a., 10MW, 5,000 hrs) 10MW, 7,000 hrs) 10MW, 5,000 hrs) 10MW, 7,000 hrs) Belgium--National 3.01 2.58 3.17 2.72 Denmark--National n/a n/a n/a n/a Germany--Dusseldorf 2.86 2.59 3.87 3.44 Spain--Madrid 3.50 3.23 3.50 3.23 France--Paris 2.80 2.52 n/a n/a Ireland--Dublin 3.31 3.01 3.31 3.04 Italy--National 4.07 3.66 4.54 4.13 Luxembourg-Grand Duchy 2.71 2.38 2.72 2.40 Netherlands--Rotterdam n/a n/a n/a n/a Austria--Vienna n/a n/a n/a n/a Finland--National 1.92 1.85 1.93 1.85 Sweden--National 1.79 1.67 1.91 1.78 UK--National 3.17 3.11 3.32 3.09 _________________________________________________________________________________________________. Notes: 1. Prices include all taxes unless refunded. Prices converted using monthly average exchange rates. 2. n/a indicates that data are not available, usually because of confidentiality issues. Source: Derived from Eurostat Statistics in Focus Data from a private consultant, "Energy Advice", indicate the latest prices for these sizes of consumer are as follows: Gas prices for industry, pence per kWh _________________________________________________________________________________________________. 1 January 2000 1 July 2000 1 February 2001 Size D (106 GWh Size F (1164 GWh Size D (106 GWh Size F (1164 GWh Size D (106 GWh Size F (1164 GWh p.a.) p.a.) p.a.) p.a.) p.a.) p.a.) Belgium 0.76 0.69 0.96 0.89 1.21 1.13 Germany 0.99 0.72 1.30 1.01 1.62 1.18 France 0.85 0.80 1.00 0.95 1.25 1.20 Italy 0.94 0.84 1.17 1.02 1.39 1.19 Netherlands 0.83 0.69 1.00 0.86 1.25 1.12 UK 0.56 0.51 0.57 0.51 0.77 0.73 _________________________________________________________________________________________________. Notes: 1. Prices include non-refundable taxes. 2. UK prices are estimated averages of all suppliers. New contract prices in mid February are estimated as 1.01-1.06 pence per kWh for large consumers on firm supply terms and 0.92-1.01 pence per kWh for interruptible supplies. Source: Energy Advice Electricity prices for industry, pence per kWh _________________________________________________________________________________________________. 1 January 2000 1 July 2000 1 February 2001 Size Ciii (52.5 Size Civ (70 GWh Size Ciii (52.5 Size Civ (70 GWh Size Ciii (52.5 Size Civ (70 GWh GWh p.a., 10MW, p.a., 10MW, GWh p.a., 10MW, p.a., 10MW, GWh p.a., 10MW, p.a., 10MW, 5,250 hrs) 7,000 hrs) 5,250 hrs) 7,000 hrs) 5,250 hrs) 7,000 hrs) Belgium 3.14 2.72 3.24 2.83 3.27 2.87 Germany 3.20 2.79 3.13 2.52 3.31 2.68 rance 3.00 2.70 2.82 2.55 2.84 2.56 Italy 3.85 3.43 4.63 4.50 4.83 4.72 Netherlands 3.26 2.96 3.35 3.15 2.81 2.77 UK 3.52 3.41 3.08 2.97 3.08 2.97 _________________________________________________________________________________________________. Note: Prices include non-refundable taxes. Source: Energy Advice Electricity prices for industry, pence per kWh _________________________________________________________________________________________________. Size Eiv. 80MW Special Contracts/ "As Found", 1 February 2001 Minimum Maximum Belgium 2.40 2.62 Germany 2.10 2.52 France 2.03 2.21 Italy 3.97 4.10 Netherlands 2.25 2.45 UK 2.35 2.87 _________________________________________________________________________________________________. Note: Prices include non-refundable taxes. Source: Energy Advice

Secondary information

Type

Written question

Reference

154276; 365 c225-8W;365 c225-7W

Session

2000-01

Subjects

Consumers Energy Electricity Industry Natural gas Prices Utilities

Contains statistics

Yes

Link

View this Written question on www.publications.parliament.uk