HC Deb 09 May 1988 vol 133 cc1-2
1. Mr. Forth

To ask the Secretary of State for Energy what proportion of the nation's energy production is provided by the private sector; and what was the proportion in 1979.

19. Mr. Hunter

To ask the Secretary of State for Energy what proportion of the nation's energy production is provided by the private sector; and what was the proportion in 1979.

The Secretary of State for Energy (Mr. Cecil Parkinson)

Provisional figures indicate that the private sector currently accounts for 70 per cent. of indigenous production of primary fuels, compared with 55 per cent. in 1979.

In terms of final energy consumption met by the private sector, that represents an increase from 41 per cent. in 1979 to 73 per cent. now. After the privatisation of the electricity supply industry that figure should rise to 87 per cent.

Mr. Forth

I thank my right hon. Friend for that most encouraging reply. Will he confirm his belief that this process has been good for both the consumer and the country as a whole, and will he say whether he has any immediate or long-term plans to extend that proportion of private provision even further?

Mr. Parkinson

The Government have made their position clear. They believe that energy provision, as well as most other industrial and commercial activities, are best carried on by the private sector, and we shall be pursuing that policy with the other industries for which, at present, we have no immediate plans for privatisation.

Mr. Hunter

Although I quite unreservedly welcome and applaud the private sector's increased role in energy production, will my right hon. Friend take this opportunity to comment on the successful implementation of the Government's wish to see increased competition in energy production?

Mr. Parkinson

As my hon. Friend knows, a prime purpose of our electricity privatisation proposals is to create competition in generation. We believe that, in the long term, that offers the best prospects for keeping down prices to the consumer.

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