HC Deb 23 May 1978 vol 950 c493W
Mr. Skeet

asked the Secretary of State for Energy what is the formula for the subsidy expected to be paid for power station coal in 1979.

Mr. Eadie

The only Government subsidy that it has been agreed shall be paid for power station coal in 1979 is that to be paid under the agreement to support the supply of coal to Scottish power stations, announced on 22nd March 1977. The formula is essentially the difference between the price paid by the South of Scotland Electricity Board to the National Coal Board, which is 5 per cent. higher than the price of equivalent East Midlands-Yorkshire coals, and the price which would have been paid had it been 10 per cent. higher. There is an overall financial limit of £7 million a year at March 1977 Survey prices.