§ Mr. PrescottTo ask the Secretary of State for Energy what has been the level of investment and depreciation by the Central Electricity Generating Board in each of the years since 1975; and how much of the investment programme is funded by the depreciation programme.
§ Mr. ParkinsonThe purpose of the depreciation provision is to write down the value of existing assets over their estimated useful lives. The CEGB has not created a fund for future investment. Depreciation does contribute to the CEGB's cash flow but as the table demonstrates, the level of depreciation does not determine the rate of investment or vice versa.
£ million Capital expenditure Depreciation 1975–76 462 262 1976–77 534 266 1977–78 501 386 1978–79 515 401 1979–80 603 424 1980–81 688 690 1981–82 836 805 1982–83 909 922 1983–84 965 844 1984–85 880 892 1985–86 745 958 1986–87 616 1,082 Source: CEGB Annual Report and Accounts.
§ Mr. PrescottTo ask the Secretary of State for Energy how much of the depreciation fund of the electricity supply industry will be used towards the cost of the investment programme to offset the replacement of existing assets.
§ Mr. ParkinsonDepreciation has been provided by the industry to write off existing assets over their estimated useful lives. The electricity supply industry does not have a depreciation fund which is available for future investment.