Energy Prices: Energy-intensive Industries Debate
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Lord Howell of Guildford
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Energy Prices: Energy-intensive Industries
Lord Howell of Guildford Excerpts(3 weeks, 2 days ago)
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Lord Hunt of Kings Heath (Lab)
My Lords, I hesitate to answer the noble Baroness by saying “in due course”. Clearly, these matters are being discussed very fully in my department, and we want to reach a conclusion as quickly as possible, but I cannot give her a date.
Lord Howell of Guildford (Con)
My Lords, if the Minister is correct in his economic theory about gas and electricity prices—frankly, I am not sure that he is—why is the lower price of oil, which is now getting quite low, not bringing down the price of gas as well?
Lord Hunt of Kings Heath
My Lords, it is because of marginal pricing, whereby gas is the most predominant, and it tends to set the price. As my noble friend said, this system has operated for many years, but we are looking at it very carefully.