HL Deb 12 May 1993 vol 545 cc1279-81

2.56 p.m.

Viscount Hanworth asked Her Majesty's Government:

Whether, in approving larger gas-fired turbine installations, they will give priority to those which, first, are sited in the long-term interest of the United Kingdom's power requirements, and, secondly, may be of use for industrial or domestic combined heat and power projects.

Viscount St. Davids

My Lords, in determining the best site for power generation an applicant should give consideration to the economic case for that site, and to the environmental impact which it will make. It is the Government's policy to consider the environmental merits of the site of a proposed power station when considering an application made under Section 36 of the Electricity Act 1989. The economic case for a site is best determined by the company which is to risk the considerable capital involved in building and operating the station—often for more than 20 years. The impact a proposed station will have an the nation's integrated network is best influenced through price signals given by the National Grid Company on behalf of the network.

Viscount Hanworth

My Lords, I thank the Minister for that reply, which is not wholly satisfactory. What is worrying me, and I hope is worrying him to some extent, is that it appears that overall the Government have no energy policy and are prepared to accept the marketplace with its short-term ideas in place of taking a more robust attitude regarding our future.

Viscount St. Davids

My Lords, I repeat the argument central to the Government's energy policy from Hansard, when my noble friend Lady Denton repeated in this House a Statement made by my right honourable friend the President of the Board of Trade in another place. He said, It is central to the Government's energy policy to help create competitive energy markets within which consumers can obtain electricity produced from a diversity of sources at competitive prices. This is the best way to keep consumers' costs down and thereby strengthen our industrial competitive-ness".—[0fficial Report, 25/3/93; col. 451.]

Lord Stoddart of Swindon

My Lords, is the noble Viscount aware that this is a most important Question? It involves our future energy supplies. Is he aware that a shortage of gas to both industrial and domestic consumers has been predicted by Mr. Chris Fay, the managing director of Shell exploration and production wing, and also by stockbrokers, Wood Mackenzie, who predict that there will be shortages by 1996–97? Under those circumstances does it not behove the Government to ensure that power stations which are going to use gas, use it in the most efficient manner possible? Better still, perhaps they should reconsider their attitude towards coal, gas and other energy supplies.

Viscount St. Davids

My Lords, gas will certainly play its part in the power generation market, but so, too, will other types of fuel.

Lord Bruce of Donington

My Lords, is the noble Viscount aware that the quotation that he was kind enough to provide out of a Statement made by his right honourable friend in another place does not disclose a policy at all? It is merely a lot of pious platitudes. When will we have a statement of the Government's policy (if they can spare the time to think one out) on the energy requirements of the country as a whole?

Viscount St. Davids

My Lords, I would again refer the noble Lord to the Statement made by my right honourable friend the President of the Board of Trade and to the subsequent debate that took place in your Lordships' House.

Lord Ezra

My Lords, the Question on the Order Paper put by my noble friend includes a reference to combined heat and power. May I therefore ask the noble Viscount what is the Government's policy in order to promote this means of virtually doubling the efficiency of power stations? Are they now going to pursue a more active policy in this regard than in the past?

Viscount St. Davids

My Lords, the Government recognise the potentially favourable economics and environmental benefits of new power stations which have a substantial heat and power element. The construction of new plant for generating electricity which is consumed on site is already encouraged by their exemptions under certain conditions from the need for a supply licence. The Government are currently consulting the electricity industry and its consumers as to whether and how these conditions might be relaxed to ensure further CHP projects.

Lord Donoughue

My Lords, bearing in mind that the 36 gas turbine generating plants proposed to be commissioned within the next three years—half of that capacity is already under construction or has consent—is probably the single largest factor in the reduction in demand for British coal, can the Minister tell us how many pits have ceased production since the announcement of the new coal strategy last October, and how many miners have been made redundant?

Viscount St. Davids

My Lords, I would deem the question posed by the noble Lord to be somewhat wide of the Question on the Order Paper. I do not have the figures he requires to hand; but if he will permit, I shall write to him in due course.