HC Deb 09 May 1983 vol 42 cc623-4
16. Mr. Knox

asked the Secretary of State for Energy what proportion of the electricity supply in the United Kingdom was coal-generated in the most recent year for which figures are available; and how this compares with the figure for 1974.

Mr. John Moore

In 1974 coal generated 56 per cent. of the United Kingdom's electricity. By 1982 this had risen to 74 per cent.

Mr. Knox

Does my hon. Friend agree that those figures show that satisfactory progress has been made since 1974? Does he expect that trend will continue in the years ahead?

Mr. Moore

They show that the relative disparity between the price of oil and coal has been maintained in the past few years. Last year we saw the percentage of electricity generation by coal nearer 80 than 74 per cent. Therefore, it would be hard to imagine, however much we would wish, that coal will penetrate the electricity generation market by more than 75 to 80 per cent. The figures are very satisfactory for our coal industry.

Mr. Waller

Does my hon. Friend agree that the one thing that could most damage the coal industry's future and its contribution to our energy resources would be a decision to keep open any pit, regardless of whether it was economic, at the expense of the most efficient pits, such as the one at Selby in Yorkshire, which have a great future and can contribute considerably to coal in future?

Mr. Moore

My hon. Friend is right. The degree to which the coal industry is able to utilise its substantial investment—for example, the £800 million-plus a year that is going into mines such as Selby—is obviously hindered by the degree to which the industry has to keep open its uneconomic capacity. The industry has closed only 8 million tonnes of capacity in the last nine years since "Plan for Coal". It has opened over 16 million tonnes of capacity and there are 26 million tonnes of new capacity in train. Obviously, if the industry is to obtain the new clients that it wishes it must develop that investment. My hon. Friend is right to assume that, providing the investment goes in the direction of new low-cost capacity pits, such as Selby, the industry has an excellent future, especially as its new markets are in the industrial market place as opposed to the current markets in electricity generation, which form 80 per cent. of the whole.