Electricity Industry

HC Deb 11 March 1985 vol 75 c7

3. Mr. Eggar

asked the Secretary of State for Energy if he has plans for reforming the structure of the electricity industry.

The Parliamentary Under-Secretary of State for Energy (Mr. Alastair Goodlad)

I have no present plans to reform the structure of the electricity industry, though this will be kept under review.

Mr. Eggar

Now that the miners' strike is over, will it not be necessary to think in terms of restructuring the finances of the electricity supply industry? If so, is that notyet another reason to move radically towards privatisation of the industry?

Mr. Goodlad

I know that my hon. Friend has devoted considerable thought to the subject. He will be aware that the Government have already encouraged, by the Energy Act 1983, a more open market in electricity supply by removing the legislative and institutional constraints on private generation and establishing a framework for fair dealing between private generators and the electricity boards.

Mr. Welsh

If the Minister is considering different sources of electricity supply and hoping that there will be an improvement in coal production up to 125 million tonnes per year, surely he must be expecting that more of that coal will be fed to the electricity industry than is at present the case.

Mr. Goodlad

The hon. Gentleman has raised a very interesting point.

Mr. Kenneth Carlisle

Does my hon. Friend recall that, in the last Parliament, the Oil and Gas (Enterprise) Act 1982 provided for the gas distribution system to act as a common carrier for private gas supplies? Will he bear in mind the principle of the common carrier in any thoughts about the denationalisation of the electricity industry?

Mr. Goodlad

Yes.

Mr. Rowlands

The Minister mentioned the Energy Act and applications for the private generation and distribution of electricity. How many applications under that Act has the Department approved?

Mr. Goodlad

Private generation involves considerable substantial investment and long lead times, and it is too soon to judge clearly how the private sector is responding to the Act.