HC Deb 23 March 1981 vol 1 cc623-4
15. Mr. Hal Miller

asked the Secretary of State for Energy what are the latest production costs of the Central Electricity Generating Board for generating electricity from nuclear power, coal-fired and oil-fired stations, respectively.

Mr. Norman Lamont

The latest available information is set out in appendix 3 of the CEGB's annual report and accounts 1979–80, a copy of which is available in the Library of the House. This shows that in 1979–80, on the basis and assumptions used, stations commissioned since 1965 produced electricity at roughly the following costs—nuclear power, 1.3p/KW hr; coal-fired, 1.5p/KW hr; oil-fired, 1.9p/KW hr.

Mr. Miller

I thank my hon. Friend for those figures. Does he agree that they show that we should concentrate on nuclear power, and also that we should make every effort to keep down the costs of the other fuel-fired stations?

Mr. Lamont

My hon. Friend is right. The Government have made it clear that they wish to see the development of nuclear power in this country. That has been the subject of questions earlier this afternoon.

Mr. Palmer

Is the Minister aware that the placing of the orders for the two AGR stations at Torness and Heysham, which were approved by the previous Administration, is being held up by an absurd financial dispute between the National Nuclear Corporation and the CEGB? The right hon. Gentleman talks about the previous Administration dithering. When will he stop dithering?

Mr. Lamont

The hon. Gentleman has put his finger on an extremely serious matter. There is some disagreement between the CEGB and the NNC, and that is a business matter between the board and its suppliers. I assure the hon. Gentleman that the Government take this matter very seriously. Immediately after Question Time today we are to have a meeting with those concerned in order to discuss this subject.

Mr. Rost

When will the Government introduce measures to restore genuine competition in the electricity industry, so as to improve efficiency and enable the consumer to get a better deal?

Mr. Lamont

We have announced our intention to remove the monopoly that the electricity supply industry enjoys in the supply of electricity. We have in mind a legislative vehicle for that idea at a fairly early date.