XN000022-1974-05-16 — Page 8

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THURSDAY, MAY 16, 1974

ALLEGATIONS OF ELECTRICITY TARIFF INCREASE DENIED

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THE SECRETARY FOI: ECONOMIC SERVICES. MR. DEREK JONE,

HAS CATEGORICALLY DENIED THAT HE HAD PREDICTED OR SPECULATED THAT ELECTRICITY TARIFFS WOULD GO UP.

MR. JONES ISSUED THIS DENIAL IN THE WAKE OF SUCH ALLEGATIONS APPEARING IN SOME NEWSPAPERS.

HE STRESSED THAT THE ELECTRICITY COMPANIES HAD NOT MADE ANY PROPOSALS FOR ANY INCREASES.

+AS FAR AS 1 CAN RECALL 1 WAS ASKED AT A RECENT PRESS CONFERENCE WHAT WOULD BE THE GOVERNMENT'S ATTITUDE IF THE ELECTRICITY COMPANIES PROPOSED AN INCREASE IN TARIFFS. AND MY ANSWER WAS THAT THE OIL POLICY COMMITTEE OF WHICH I AM CHAIRMAN HAS HAD FREQUENT MEETINGS WITH THE POWER COMPANIES, AND THAT THE GOVERNMENT HAD MADE THE POINT THAT THEY SHOULD NOT INCREASE THEIR TARIFFS WHENEVER THEY LIKED, MR. JONES SAID.

+ IF THE COMPANIES PROPOSE TO INCREASE THEIR TARIFFS, THEY WOULD HAVE TO PROVE THAT THEIR PROFITS HAD NOT REACHED A REASONABLE LEVEL WHEREUPON THE GOVERNMENT WOULD CONSIDER WHETHER A PRICE INCREASE SHOULD BE ALLOWED, MR. JONES EXPLAINED.

+WHAT THE GOVERNMENT'S ATTITUDE WOULD BE TO SUCH PROPOSALS SHOULD THEY BE MADE CANNOT BE STATED IN ADVANCE WE WOULD HAVE TO AWAIT DETAILS OF ANY PROPOSALS AND CONSIDER THEM IN THE LIGHT OF ALL THE PREVAILING CIRCUMSTANCES, INCLUDING THE INTERESTS OF THE COMMUNITY AS A WHOLE,+ MR. JONES SAID.

HE ADDED THAT FOR THE FORSEEABLE

FUTURE WHETHER THE PRICE

OF ELECTRICITY ROSE, FELL OR REMAINED STABLE WOULD DEPEND SOLELY ON THE PRICE OF FUEL OIL.

HE POINTED OUT THAT INCREASES IN THE PRICE OF ELECTRICITY WHICH OCCURRED IN THE LAST FEW MONTHS HAD BEEN DUE MAINLY TO THE INCREASE IN THE PRICE OF FUEL OIL, WHICH THE ELECTRICITY COMPANIES HAD TO PAY, AND THAT THE CONSUMER PAID NO MORE THAN THE EXTRA COST OF THE FUEL OIL.

+THE ELECTRICITY COMPANIES DO NOT MAKE ANY EXTRA PROFIT BECAUSE OF THE PRICE OF FUEL 011.,+ MR. JONES SAID.

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