§ 9. Mr. Raceasked the Secretary of State for Energy what information as to the relative costs of power generation by coal, oil, nuclear and renewable sources are available to him.
§ Mr. John MooreThe CEGB has today published a comprehensive memorandum on the relative costs of power generation. It confirms that a new nuclear power station can realistically be expected to produce electricity more cheaply than a coal or oil-fired station.
§ Mr. RaceI have no doubt that the House will be glad that the CEGB has got round to publishing the report after months of delay. Does the report look at nuclear power on the basis of current rather than historic costs, because we cannot have a comparison of coal, oil and nuclear power based on historic costs for nuclear power and current costs for coal and oil? Has the CEGB taken that major factor into consideration?
§ Mr. MooreI know that the hon. Gentleman, with his usual sense of fair play, will be pleased that the CEGB has taken so long to produce a thorough and comprehensive review of the comparable costs. I shall make sure that copies of the report are put in the Library today. I am sure that the hon. Gentleman will want to study it with care. All aspects of the methodological queries that have been raised in the past are covered in the report, which states that a new PWR is expected to produce electricity at 2.61p per kilowat hour over its lifetime compared with 3.88p per kilowatt hour for a new coal-fired station. Therefore, the PWR is expected to produce electricity at only two thirds of the cost of a coal-fired station.
§ Mr. FormanWhat allowance is made in those calculations for the cost of decommissioning power stations, particularly nuclear ones?
§ Mr. MooreFull costs are taken into account for decommissioning. I am sure that my hon. Friend, as well as other hon. Members, would like to have the benefit of studying the report thoroughly before pursuing further questions on it.
§ Mr. PalmerDoes the Under-Secretary of State agree that the Magnox nuclear power stations are now producing the cheapest electricity available and that that is why the electricity supply unions support the balanced development of nuclear power?
§ Mr. MooreI know that the hon. Gentleman, with his long experience of the industry, and the trade unions recognise the contribution of nuclear power to a balanced energy supply. I hope that he and other hon. Members will carefully study the report. It is difficult to draw distinctions between snapshot, historical and whole new lifetime accounting costs, as I am sure hon. Members will recognise. When the hon. Gentleman has studied the report, I am sure that the advantages of diversified supply, as well as of new nuclear power stations, will be clear.