HC Deb 16 July 1962 vol 663 cc23-4
24. Mr. A. Roberts

asked 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. Peyton

The 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. Roberts

Is the hon. Gentleman convinced that the method of accounting and costing for electricity from nuclear power stations is correct?

Mr. Peyton

We 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. Warbey

Is 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. Peyton

Six per cent. is perfectly correct.

Mr. Roberts

Is 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. Peyton

I 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.