HC Deb 04 July 1977 vol 934 cc855-7
1. Mr. Biffen

asked the Secretary of State for Energy if he will make a statement on the current and prospective margins of unused capacity in the electrical generating industry.

The Under-Secretary of State for Energy (Mr. Alex Eadie)

The electricity generating industry plans to have an adequate margin of generating plant in reserve to meet abnormally high demand in the event of severe weather and plant breakdown. Recently this margin has been higher than planned. The margin of plant on the Central Electricity Generating Board system over and above last winter's peak demand was 33 per cent. and it is expected to remain at about that level until the early 1980s.

Mr. Biffen

In view of this substantial margin of excess capacity over and above what was planned, will the Minister and his colleagues pay high regard to that factor before yielding to the well-orchestrated lobby that is trying to persuade the Government to authorise the accelerated construction of Drax B power station?

Mr. Eadie

The ordering of Drax B must be seen in the context of the need to preserve a healthy manufacturing capability in this country. The margin has been 20 per cent. during the past few years. However, the industry considers that a higher margin is now justified and has endorsed an increase to 28 per cent., which will be reviewed by the Government in two years' time. At high peak demand, the service capacity with these margins of safety is 5 per cent.

Mr. Palmer

Does the Minister agree that the trouble with the electricity supply industry is that it has too much coal and not enough electrical load? Should not steps be taken by the Department to create a proper pricing policy to obtain more load for the electricity supply industry?

Mr. Eadie

The matter—as my hon. Friend has put it—of too much coal and reduced demand is a factor that the House has debated before. My hon. Friend is well aware of that. However, with expansion in the economy demand will begin to pick up and we may be grateful for the fact that we have this spare capacity.

Mr. Gray

Is the Minister aware that our potential export markets are having their confidence undermined by the complete lack of decision on the part of the Government in this matter? How long does the Cabinet require to study the relevant documents before reaching a conclusion?

Mr. Eadie

It has been announced that a decision will be taken as quickly as possible. It is a difficult decision. It is not entirely true that export markets are being undermined. There is a worldwide difficulty about demand and potential.

Mr. Mike Thomas

Is my hon. Friend aware that the figures show a modest upturn in electricity demand and that, therefore, he is right in believing that the sort of margins that there have been recently may not last long? Is he further aware that the debate on Drax B is about the long-term future of an industry, not about a short-term problem which I hope we shall shortly overcome?

Mr. Eadie

The arguments that my hon. Friend has described are about the capability of the manufacturing capacity of the industry.

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