HC Deb 14 May 1984 vol 60 cc11-2
6. Mr. Nicholas Baker

asked the Secretary of State for Energy what discussions he has had with the Central Electricity Generating Board about cutting its costs.

Mr. Giles Shaw

My right hon. Friend the Secretary of State and I have regular meetings with the chairmen of both the Electricity Council and the Central Electricity Generating Board. The industry's progress in controlling costs is one of the subjects that we discuss.

Mr. Baker

Does my right hon. Friend agree that one way of reducing electricity price increases is for the CEGB to cut its costs and improve efficiency? What incentive can my right hon. Friend give the CEGB to do that, in the interests of the consumer?

Mr. Shaw

I must remind my hon. Friend that the CEGB is doing just as he asks. The cost of producing electricity in the United Kingdom is falling, because improved productivity has been the order of the day. The CEGB deserves credit for improving its efficiency and for reducing costs, though that is also due to the Government's success in bringing down inflation.

Mr. Foulkes

If coal stocks at power stations are as high as the Secretary of State told us in answer to question No. 4, why is the CEGB burning so much expensive imported oil?

Mr. Shaw

As the hon. Gentleman knows, the CEGB is burning more oil than it had planned to do—

Mr. Foulkes

Why?

Mr. Shaw

The hon. Gentleman will be the first to recognise the importance of doing that to ensure continuity of supply.