Energy Act 1983

HC Deb 28 October 1985 vol 84 cc657-8

11. Mr. Rost

asked the Secretary of State for Energy if he will make a statement on the working of the Energy Act 1983.

Mr. Buchanan-Smith

It is too early to evaluate the full effects of the Act, but it is encouraging that the number of private generators selling electricity to boards in Great Britain rose from 59 in 1983–84 to 70 in 1984–85.

Mr. Rost

Will my right hon. Friend reconsider the fact that there is increasing evidence from private producers who claim that they are still not obtaining a fair price for their electricity and that the CEGB is not applying the spirit of section 19, which obliges the industry to adopt and support CHP and try to market its waste heat? Is he aware that the Sheffield consortium has been rejected by the CEGB even though the rate of return on its CHP scheme is in excess of the 5 per cent. discount rate required by nationalised industries and would be a higher rate of return than many other investments that the electricity industry is undertaking?

Mr. Buchanan-Smith

The Act provides a proper framework for fair trading. The figures that I have just announced show that there is considerable interest in the matter and that there is a reverse of the progressive decline that there was in private generation until the passing of the Act.