§ 24. Mr. A. Robertsasked the Minister of Power what is the average unit cost of producing electricity at conventional power stations; and how this compares with the latest estimated cost of electricity to be produced at each of the nuclear power stations now being built.
§ Mr. PeytonThe average cost of generation at conventional stations in 1960–61 was 0.88d. a unit, but this figure is not comparable, for a number of reasons, with estimated costs at individual nuclear stations. I am circulating in the OFFICIAL REPORT figures of estimated costs of generation at each of the nuclear stations to be commissioned in the next five years.
§ Mr. RobertsIs the hon. Gentleman convinced that the method of accounting and costing for electricity from nuclear power stations is correct?
§ Mr. PeytonWe are at a very early stage at present. As the hon. Gentleman knows very well, the fact of nuclear power has only just come upon us. I think that these figures are as good as can be given.
§ Mr. WarbeyIs it not a fact that the capital cost of nuclear power stations is calculated at the ridiculously high interest rate of 6 per cent. and that, if the interest rates in the calculation were reduced to 2½ or 3 per cent., the Sizewell and all subsequent nuclear power stations would more than break even with conventional stations?
§ Mr. PeytonSix per cent. is perfectly correct.
§ Mr. RobertsIs the hon. Gentleman aware of the statements which have been made about the costing of electricity from nuclear power stations and that these forecasts and estimates have been proved to be entirely wrong?
§ Mr. PeytonI am aware of the statements which have been made. The hon. Gentleman suggests that errors have been made in estimating capital costs. In one case I have here, the error was 16 per cent. If he wants to ask about particular power stations, I think that he should put a Question down.
§ Following are the figures:
| ESTIMATED TOTAL COST OF GENERATION AT NUCLEAR POWER STATIONS 1962–66 | ||||
| Year of Commissioning | Station | Pence per unit sent out | ||
| 1962 | … | … | Berkeley | 1.05 |
| 1962 | … | … | Bradwell | 0.95 |
| 1963 | … | … | Hinkley Point | 0.85 |
| 1964 | … | … | Trawsfynydd | 0.81 |
| 1964 | … | … | Dungeness | 0.66 |
| 1965 | … | … | Sizewell | 0.66 |
| 1966 | … | … | Oldbury | 0.66 |
| The cost of generation at conventional stations will vary according to size and location, ranging from an estimated 0.55-0.70 pence per unit for plant commissioned in 1962 to about 0.50-0.65 pence per unit for plant commissioned in 1966. |