§ 12. Mr. Brandon-BravoTo ask the Secretary of State for Energy how many proposed private schemes he is aware of in connection with the proposed privatisation of the electricity supply industry; and what percentage of the present electricity output these represent.
§ Mr. ParkinsonI am aware of some 15 private generation proposals. If all came to fruition, they would amount to 8 per cent. of the total electricity needs of England and Wales.
§ Mr. Brandon-BravoAs the White Paper was published barely six months ago, is my right hon. Friend encouraged by such interest at this early stage? Does that not represent a serious input of competition? More important, will he give the House every assurance that the new private generation schemes will have easy access to the national grid?
§ Mr. ParkinsonYes. Private generators will have access as of right to the grid, although they will have to pay a fee to use the service. I hear some sniggering remarks from the Opposition, but may I tell them that those 15 proposals come from some of the finest companies in Britain and in the world.
Mr. Alan W. WilliamsHow many of those proposals involve the use of gas to generate electricity? I notice that the Fawley B application has been withdrawn, and there is increasing talk of gas being used to generate electricity in many small schemes after privatisation. Does the Minister agree that that would be an absurd use of gas? Using gas to generate electricity is less than 50 per cent. efficient, whereas using it for heating in homes and industry is almost 100 per cent. efficient. Does the Minister agree that it is absurd in relation to the greenhouse effect?
§ Mr. ParkinsonThree or four of those applications involve the use of gas. Gas-fired stations can be produced quickly—within two years—they are extremely flexible and many people believe that the shortage of those facilities has been a disadvantage to the electricity supply industry in the past. That will be remedied.
§ 13. Mr. ThurnhamTo ask the Secretary of State for Energy what recent representations he has received about his plans for privatisation of the electricity supply industry.
§ Mr. Michael SpicerI continue to receive representations on electricity privatisation. It is clear from my discussions with many interest groups that there is a large body of support for our proposals.
§ Mr. ThurnhamDoes my hon. Friend agree that after privatisation decision-making should be better than it has sometimes been? Was it not the last Labour Government who ordered the Drax power station without gas scrubbers because they could not face telling Arthur Scargill the true cost of burning coal?
§ Mr. SpicerMy hon. Friend makes an excellent point. There is no question but that this Government have led the field in insisting that the electricity supply industry starts to clean up emissions. There are now plans for £1.5 billion worth of pollution control plant that would not have been conceived of by the Labour Government.