HL Deb 22 October 1990 vol 522 cc1136-7

2.40 p.m.

Viscount Hanworth asked Her Majesty's Government:

What proportion of existing United Kingdom electrical generating plant will be time-expired by the year 2010 and by the year 2020; and how many megawatts of capacity this represents.

Lord Cavendish of Furness

My Lords, assuming nominal lives of 35 to 40 years for fossil-fuelled plant, 30 years for Magnox and 25 years for AGRs, 57 per cent. of the existing plant in England and Wales will be time-expired by 2010 and 84 per cent. by 2020. That is equivalent to 33 gigawatts by 2010 and 49 gigawatts by 2020. Noble Lords will appreciate that, in a competitive market for generation, the actual life of the plant will depend upon commercial decisions by the companies concerned.

Viscount Hanworth

My Lords, I thank the noble Lord for that Answer. Is he not aware that time seems to be running out? Many of us feel that time is so short that it is quite probable that with privatisation we shall not achieve the desired extra capacity or replacement capacity by the time it is required. Does he not agree that it seems unlikely that the privatised companies will go in for very large stations and that therefore a large number of the smaller combined systems will not easily make up for the deficiency of the larger plants?

Lord Cavendish of Furness

My Lords, I cannot agree. Several generators are building or are planning to build new plant. In addition to projects promoted by National Power and PowerGen, a number of independent projects are coming forward. Planning consents already exist for more than 3 gigawatts of new gas-fired generating capacity. Most of the applications are for gas-fired capacity. Applications for a further 6 gigawatts are with the department and there are indications that there may be applications for a further four gigawatts.

Lord Williams of Elvel

My Lords, can the noble Lord reassure us on one point? Is it not the case that National Power is now closing down capacity? Is it not also the case that neither National Power nor any other generator has responsibility for security of supply and for ensuring that demand will be met at the beginning of the next century? Given that, ultimately, whatever the legislation says, this is a government responsibility, how will they ensure that that demand is met?

Lord Cavendish of Furness

My Lords, in the new structure of the industry a competitive market will provide the capacity needed. Suppliers are required by their licences to meet the existing standards of security and to purchase sufficient electricity from the pool to meet the needs of customers. Generators will respond to the pool price and consequently will have an incentive to build sufficient capacity. Suppliers may also enter into long-term contracts with the generators as well as buying from the pool.

Lord Ezra

My Lords, I should like to press the noble Lord further. Can he say whose responsibility it is to ensure security of supply? As the noble Lord will be aware, under the previous regime it was the CEGB. No doubt he will recall that under present arrangements it was originally proposed, when we discussed the Electricity Bill, that this should be transferred to the distribution companies. Therefore, can he advise us precisely who has the responsibility at present?

Lord Cavendish of Furness

My Lords, the distributors now have this power. There are further powers vested in the Director General of Electricity Supply. He will monitor the security of supply provided by suppliers.

Lord Williams of Elvel

My Lords, can the noble Lord tell us how it is proposed that the director general will supply electricity and guarantee supply?

Lord Cavendish of Furness

My Lords, of course the director general cannot supply electricity himself. But the system in other industries involving people occupying similar roles has proved effective.