HC Deb 06 July 1981 vol 8 cc13-4
13. Mr. John H. Osborn

asked the Secretary of State for Energy what conclusions the Ministers of Energy of the European Economic Community reached after reviewing the Commission's report, following the National Economic Development Council task force report on energy costs to British industry, about subsidies, tax deductions, cost of energy to industry throughout European Economic Community countries and the consequential disparities.

Mr. David Howell

At the Energy Council on 24 June the Commission reported progress on the study of energy prices, which was requested by the previous Energy Council in March.

The Commission has undertaken to submit its detailed report in the near future.

Mr. Osborn

Are we moving nearer to a common energy policy and balancing cheapness and economy with security of supply? Will my right hon. Friend bear in mind that many British industrialists, especially the electric steel makers of Sheffield, do not like to see high-cost electricity from coal-fired power stations in their regions when their competitors are being supplied with electricity from nuclear and hydro sources at 60 per cent. below the price of British electricity? May I suggest some equalising and some nuclear power from France to keep our steel industry competitive?

Mr. Howell

In pursuing a common energy policy the main emphasis must be on national policies being developed in a common framework aimed at reducing dependence on oil and developing alternative energy economies in Europe. I have already commented on the changing scene of price disparities. My hon. Friend is right to draw attention to the considerable French advantage, which arises from early and bold decisions to build nuclear power stations on cost and to time. They have produced a pattern of electricity generation that provides a substantial advantage over not only the United Kingdom, but other parts of the Community, including West Germany. My hon. Friend is right to draw attention to the disparity.

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