§ 16. Mr. Campbell-Savoursasked the Secretary of State for Energy what progress has been made in implementing the findings of the National Economic Development Council report on energy prices.
§ Mr. David HowellThe NEDC task force was directed to estimating the extent of industrial energy price disparities between the United Kingdom and mainly European countries. The energy pricing measures announced in the Budget Statement, and now being implemented, were a considered and rapid response by Government to the report's findings.
§ Mr. Campbell-SavoursWhat is the Government's long-term strategy with regard to securing competitive electricity prices for large industrial users, particularly in the light of the reply to the hon. Member for Eastleigh (Sir D. Price) when the Secretary of State last answered oral questions and said that the electricity industry had a long-term structural problem?
§ Mr. HowellI think that the answer has been made clear in earlier replies from the Dispatch Box. The long-term aim must be an efficient low-cost nuclear generating capacity, enlarged from its present size, plus competitive coal. By that I mean competitive not merely with deep mined coal from elsewhere in Europe, but with the kind of costs that can be obtained by importing coal from further away. As our electricity industry is predominantly based upon coal, we must have competitive coal. The long-term strategy must therefore be an enlarged nuclear capacity and competitive coal. If we can achieve that, as I believe that we can, we shall have competitive electricity.