HL Deb 07 July 1988 vol 499 cc391-2

3.13 p.m.

Lord Hunt asked Her Majesty's Government:

Whether they intend to embody the environmental responsibilities currently held by the CEGB under Section 37 of the 1957 Electricity Act in the Government's plans for privatising the electricity supply industry.

Viscount Davidson

My Lords, the Government intend to take powers in their legislation to ensure that an amenity obligation, similar to that expressed in Section 37 of the Electricity Act 1957, is placed on the privatised electricity supply industry.

Lord Hunt

My Lords, I thank the noble Viscount for that short Answer. Is he aware that there is real concern among many people lest cost-trimming economies in the new privatised industry work to the detriment of the environment and of environmental matters in all their aspects, not limited only to the effect of burning fossil fuels? Would he agree that Section 37 of the 1957 Act spells out all those environmental aspects clearly and in great detail? Can he therefore assure the House that the new industry, both in its generating and in its distributing functions, will be monitored not only to assess environmental impact but also to judge standards of service to the public? Will the regulatory system also cover those aspects?

Viscount Davidson

My Lords, I can confirm that the Government intend the amenity obligation to apply to all parts of the industry; that is, generation, transmission and distribution, including those persons who generate electricity for their own consumption. The Government intend to provide on the face of the legislation a right to take civil proceedings in the event of a breach of the duty. I should remind the House that the present statutory obligation on amenity, Section 37, is silent on enforcement.

Lord Williams of Elvel

My Lords, will the noble Viscount confirm that in addition to the general amenity obligation to which he has referred, new installations of the privatised electricity authority—whether in generation or transmission—will be subject to environmental assessment as required by the European directive?

Viscount Davidson

My Lords, yes; I can confirm that.