Power Stations

HC Deb 06 February 1968 vol 758 cc57-8W

34. Sir D. Kaberry

asked the Minister of Power what offers the National Coal Board have submitted for the supply of cheap coal to produce electricity from thermal power stations to manufacturers submitting proposals for the smelting of aluminium to the Government; and for what tonnage, over what period of years and at what price.

Mr. Marsh

Discussions between the National Coal Board and prospective customers are confidential commercial matters.

Mr. Woof

asked the Minister of Power whether he estimates that a nuclear power station at Seaton Carew will be able to generate electricity more cheaply than a coal-fired station using coal at a delivered price at 3½d. a therm.

Mr. Freeson

I would refer my hon. Friend to the reply my right hon. Friend gave him today.

Mr. Woof

asked the Minister of Power (1) what is the percentage increase in the estimated capital and operating costs of Dungeness B nuclear power station between July, 1965 and the present; and when the station is expected to be operating;

(2) if he will state the reasons for the increase in the estimated capital and operating costs of Dungeness B nuclear power station between July, 1965, and the present.

Mr. Freeson

The estimated base-load generating cost (including capital charges and operating costs) has increased by about 25 per cent. since July, 1965. The C.E.G.B. advise that the increase is made up as follows:

	Per cent.
Increase in price levels including the effects of devaluation	8
Changes in ground rules i.e. the use of 8 per cent. discount rate (in place of 7½ per cent.) and the use of the same rate for interest during construction (instead of 5½ per cent.)	7
Inclusion of royalty payable to the A.E.A.	3
Other causes	7

The station is expected to begin operating in 1970.

Mr. Woof

asked the Minister of Power whether, in reviewing his fuel policy, he will take full account of the fact that coal-fired stations require less capital than nuclear stations.

Mr. Freeson

I would refer my hon. Friend to the reply given to my hon. Friend the Member for Ince (Mr. McGuire) on 23rd January. The Fuel Policy White Paper (Cmnd. 3438) shows that capital costs, as well as running costs, are fully considered.—[Vol. 757, c. 77.]