Below is the text of Mr Major’s written Parliamentary Answer on Electricity Prices on 11th February 1988.
Mr. Morgan To ask the Chancellor of the Exchequer what is his latest estimate of the (a) deflationary impact on economic activity and (b) the inflationary impact on prices of the proposed increases in electricity prices.
Mr. Major Subject to the decisions of the area boards, the likely increases in electricity prices will add directly about 0.25 per cent. to the level of the RPI. Calculating the net impact on activity and inflation would require the simulation of an economic model, and it has not been the practice to publish such estimates.