§ 20. Ms. ArmstrongTo ask the Secretary of State for Energy what information he has about the level of staff costs in the electricity supply industry.
§ Mr. ParkinsonThe Electricity Council's annual report for 1986–87 shows that total staff costs amounted to £1,958.7 million.
§ 26. Mr. BoswellTo ask the Secretary of State for Energy how many of his Department's staff are currently working on the privatisation of the electricity supply industry.
§ Mr. ParkinsonThere are currently 21 members of my Department working specifically on the proposals for the privatisation of the electricity supply industry. This figure includes clerical and secretarial staff.
§ 27. Mr. BarronTo ask the Secretary of State for Energy what increase in income he estimates the electricity supply industry will enjoy in the financial years 1988–89,1989–90 and 1990–91 as a result of the recent price increases announcement.
§ Mr. ParkinsonThe electricity supply industry's external financing limit for 1988–89, which represents the industry's net cash income after capital expenditure, is for a repayment of £1,040 million. The net effect, taking account of a higher level of capital expenditure and payment of tax, is £163 million lower than the corresponding figure for 1987–88 and is consistent with the increase in the industry's financial target. It is not the Government's practice to publish these forecasts for more than one year ahead.
§ 33. Mr. ThurnhamTo ask the Secretary of State for Energy what recent representations he has received about his proposals for privatising the electricity supply industry; and if he will make a statement.
§ Mr. ParkinsonI have received representations from electricity consumers, unions, other nationalised industries and other interested parties and will take these into account when considering proposals for the privatisation of the industry.
§ 36. Mr. DykesTo ask the Secretary of State for Energy if he has received any representations from the public proposing differential solutions for the various segments of the industry arising from the preparations to privatise the electricity supply industry.
§ Mr. ParkinsonI have received representations from the public proposing a range of options for the privatisation of the electricity supply industry. I shall take these views into account when drawing up plans for privatisation.
§ 42. Mr. SoamesTo ask the Secretary of State for Energy what is his latest timetable for the proposed privatisation of the electricity supply industry.
§ Mr. ParkinsonI am developing proposals and work is proceeding on time. Decisions have not been taken and it would be premature to announce a timetable. However, I anticipate putting details of our proposals to Parliament in the first part of next year.
§ 43. Dr. MarekTo ask the Secretary of State for Energy what representations he has received about the implications for nuclear power of the proposed privatisation of the electricity supply industry.
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§ Mr. Michael SpicerMy right hon. Friend has received representations from electricity consumers, unions, other nationalised industries and other interested parties about a wide range of issues related to the proposed privatisation of the electricity supply industry, including the implications for nuclear power. He will take these views into account when drawing up proposals for the industry.
§ 45. Mr. PrescottTo ask the Secretary of State for Energy what is the current rate of return on investment for the electricity supply inustry; and what is the proposed rate of return for the industry for 1988–89 and 1989–90.
§ Mr. ParkinsonThe present financial target is an average rate of return of 2.75 per cent, on net assets, calculated on a current cost accounting basis, over the three years 1985–86 to 1987–88. In the last financial year, 1986–87, the return achieved was 3.17 percent. In order to achieve the financial target, the industry is aiming for a return in 1987–88 of 2.45 per cent. In my statement to the House on 3 November, I said that the Government and electricity supply industry had agreed financial targets of 3.75 per cent, in 1988–89 and 4.75 per cent, in 1989–90.
§ 48. Mr. Harry BarnesTo ask the Secretary of State for Energy what is the projected level of investment in the electricity supply industry to the year 2000.
§ Mr. ParkinsonInvestment to replace aging capacity and to meet new demand is essential if the electricity industry is to continue to provide customers with a reliable and efficient system of supply. On current forecasts of demand the CEGB envisages that up to 13 gigawatts of new capacity may be needed by the end of the century. Demand forecasts are of course kept under review and, within this framework, orders for individual new power stations will be placed on their merits.
The figure of £45 billion, which is at estimated outturn prices, derives from estimates prepared by the electricity supply industry. It indicates the scale of expenditure that may be required to meet the demand forecasts in full. On the same basis, the figure also includes substantial investment in the national grid and in other existing assets, together with investment in new capacity which may be under construction by the end of the century but not commissioned by then.
Investment on this scale will provide substantial opportunities for British industry to win orders and expand business.
50. Mr. WelshTo ask the Secretary of State for Energy when he expects to be able to announce the vesting date for the privatised electricity supply industry; and if he will make a statement.
§ Mr. ParkinsonI refer the hon. Member to the answer I gave to my hon. Friend the Member for Crawley (Mr. Soames) earlier today.
§ 61. Miss MowlamTo ask the Secretary of State for Energy what representations he has received from the electricity supply industry about the method of privatisation of the industry.
§ Mr. ParkinsonI have regular meetings with the senior management of the electricity supply industry to discuss our proposals for the privatisation of the industry. I shall take their views into account before making any decisions.
§ 65. Mr. HardyTo ask the Secretary of State for Energy what is the current rate of return on capital in the 19W electricity supply industries in the several member states of the European Economic Community; and what is his estimate of the rate of return on capital in the United Kingdom's electricity supply industry in 1988–89.
§ Mr. ParkinsonIt is not possible to make a direct comparison of rates of return in different countries, due to substantial differences in accounting practices. The financial target for the ESI in England and Wales is for a current cost rate of return of 3.75 per cent, on net assets in 1988–89.
§ Mr. PrescottTo ask the Secretary of State for Energy what has been the ratio of capital debt to income in the electricity supply industry in each year since 1975.
§ Mr. ParkinsonThe ratio of long-term borrowings at 31 March to turnover for the year then ended in the electricity supply industry in each year since 1975 has been as follows:
Year 1975 1.94 1976 1.58 1977 1.35 1978 1.08 1979 0.97 1980 0.86 1981 0.73 1982 0.58 1983 0.50 1984 0.42 1985 0.33 1986 0.38 1987 0.29
§ Mr. PrescottTo ask the Secretary of State for Energy what is the income derived from an average rate of return for the electricity supply industry of(a) 2.45 per cent, (b) 3.75 per cent, and (c) 4.75 per cent.
§ Mr. ParkinsonThese figures represent the electricity supply industry's expected rates of return in the three years to 1989–90. I therefore refer the hon. Member to the answer given to the similar question by the hon. Member for Rother Valley (Mr. Barron) on 23 November 1987.