French Nuclear Power: Cost (Hansard, 15 March 1993)

§ The Parliamentary Under-Secretary of State, Department of Trade and Industry (Baroness Denton of Wakefield)
My Lords, the French Minister of Industry has estimated that the lifetime costs of a new PWR station would be about 2.7p per kilowatt hour. Whether new nuclear capacity in the United Kingdom can be competitive with other forms of generation is a matter for the Government's forthcoming review of the future prospects for nuclear power.

§ Viscount Hanworth
My Lords, I thank the Minister for that reply. Can she say whether, before 1994 or earlier, the public will be given a reasonable assessment of what might be the cost of new nuclear power?

§ Baroness Denton of Wakefield
My Lords, I am delighted to tell the noble Viscount now that the Nuclear Electric figures estimate that the lifetime cost of Sizewell 13 will be 5.2p per kilowatt hour and a twin reactor at Sizewell C could generate at under 3p per kilowatt hour.

§ Lord Mason of Barnsley
My Lords, is the Minister aware that the cost of imported French nuclear power is equivalent to the loss of five coal mines, and consequently to the loss of 5,000 coal miners' jobs? Is not that a case of the blatant import of unemployment? When one considers our own unemployment problems and the state of the mining industry, is that worth while?

§ Baroness Denton of Wakefield
My Lords, I am as aware as the noble Lord that those are questions which in due course the coal review will look at. But I point out that legislation to prevent imports of French electricity would be likely to fall foul of the Treaty of Rome.

§ Lord Gray of Contin
My Lords, does my noble friend accept that during its construction the Sizewell B power station gave employment to more than 20,000 people at its peak? Does she agree that it is one of the few projects which can boast of being below budget and ahead of schedule? Furthermore, would she emphasise to her colleagues in government that 1212 when they announce the review it is imperative that they give a positive commitment to the future of the nuclear industry?

§ Baroness Denton of Wakefield
My Lords, I am delighted to take the opportunity given to me by my noble friend to congratulate the project management of Sizewell B on coming towards completion on budget and in time. I confirm that it is the Government's policy to ensure that we have a diverse and economic supply of energy for British industry.

The Earl of Halsbury
My Lords, does the Minister agree that estimates for nuclear power are very largely nonsense because no credit is taken for intermediates and transfer pricing?

§ Baroness Denton of Wakefield
My Lords, I agree with the noble Earl that the complicated costing of nuclear issues is something of which we should all be very conscious.

§ Lord Stoddart of Swindon
My Lords, is the noble Baroness aware that when that link was first thought of, the reason for it was what we called in the electricity supply industry "peak lopping"? In other words, during our peak period for demand we obtained electricity from the French, and during their peak period they obtained electricity from us. Will the noble Baroness say how many megawatts per day are sent to this country, and how many megawatts per day are sent from this country to France?

§ Baroness Denton of Wakefield
My Lords, it will not surprise the noble Lord that I cannot put my hands on those figures at the moment. I will check with him. It is possible that he understands those matters well because his colleague instigated the line.

§ Lord Stoddart of Swindon
My Lords, I understand them very well because I worked in the electricity supply industry.

§ Viscount Mersey
My Lords, does my noble friend agree that unemployment in the Sizewell area is very bad at the moment because of the pulling out of the biggest employer in the area, which is the American Air Force? Is she therefore able to give us any hope that the building of Sizewell C will start as soon as Sizewell B is complete? In particular, can she give us any hope that the government White Paper on nuclear power might be with us in 1993, and not in 1994?

§ Baroness Denton of Wakefield
My Lords, obviously Sizewell C is a commercial matter for Nuclear Electric and for the review. As to the review itself, bringing forward the 1994 review was one of the recommendations of the Trade and Industry Select Committee report on the market for coal. The Government will respond to that committee's report in due course. It would be inappropriate for me to prejudge the response.

§ Lord Donoughue
My Lords, the Minister did not answer the first part of the Question from the noble Viscount, Lord Hanworth, about the actual cost of French nuclear generated electric power. Can she do that, or is she in difficulties because even the French 1213 admit that they do not know the true costs of generating their nuclear power? We know that it is subsidised. Following her reply to my noble friend Lord Stoddart, does she agree that it gives a helpful indication of the value of that two-way trade of electricity between England and France to say that since the new interconnector was established in 1986, the French have sold to us 40 times what we have sold to them; and that since privatisation, we have sold virtually nothing to the French?

§ Baroness Denton of Wakefield
My Lords, I repeat my first Answer, which I am sorry was not clear. The French estimate, with all the provisos to which the noble Lord drew attention, that the lifetime costs of a new PWR would be 2.7p per kilowatt hour. In a recent visit by my honourable friend Mr. Eggar to meet the French energy Minister, it was confirmed that the French welcome discussions in regard to the export of electricity to France on a commercial basis. Discussions are already taking place between EDF and a UK supplier.

§ Lord Campbell of Alloway
My Lords, does my noble friend agree that in order to keep a sense of proportion and balance, the commitment having been given regarding nuclear energy, it is appropriate also that some commitment should be given regarding the retention of our coal industry?

§ Baroness Denton of Wakefield
My Lords, I draw my noble friend's attention to the fact that the Question relates to nuclear matters. I am sure that the coal review will answer his question.

§ Lord Eatwell
My Lords, will the Minister tell the House whether there are any plans to widen the current nuclear and coal reviews into a review of the criteria for the development of energy policy as a whole? Is not that the only rational way forward?

§ Baroness Denton of Wakefield
My Lords, I am sure that the noble Lord will find that the review of the coal situation covers all aspects of energy.