HC Deb 26 June 1989 vol 155 c355W
35. Mr Meale

To ask the Secretary of State for Energy what is the total cost incurred to date by his Department on advice on financial aspects of the privatisation of the electricity supply industry.

52. Mr. Bill Michie

To ask the Secretary of State for Energy if he will state the total cost incurred to date by his Department on advice on legal aspects of the privatisation of the electricity supply industry.

Mr. Michael Spicer

The total cost to my Department of all advisers working on electricity privatisation amounted to £0.8 million in 1987–88 and £5.5 million in 1988–89. In addition, a provision of £26.5 million has been sought to cover relevant expenses in 1989–90. More detailed expenditure surrounding contracts of advisers working on electricity privatisation is commercially confidential.

45. Mr. Cummings

To ask the Secretary of State for Energy what is his latest estimate of the advertising costs of privatising the electricity supply industry in(a) the current and (b) next financial year.

Mr. Michael Spicer

I refer the hon. Member to the answer I gave to the hon. Member for Cynon Valley (Mrs. Clwyd) earlier today.

48. Mrs. Currie

To ask the Secretary of State for Energy what assessment he has made of the expected level of competition following the privatisation of the electricity supply industry.

Mr. Michael Spicer

The new structure for the electricity industry will introduce competition into generation and supply and will provide an environment in which more will develop.

For example, the generation market will include National Power, Power Gen, supplies from Scotland and France, and existing and potential independent generators. We are currently aware of about 20 proposed independent generation projects. The substantial requirement for new generation capacity in the next 10 years will provide further opportunities for competition.

53. Mr. Buckley

To ask the Secretary of State for Energy whether he has reassessed his view of 6 March 1988 that the Government's plans for electricity will cut electricity bills.

Mr. Michael Spicer

Nothing has changed my view that privatisation will mean that prices will be lower than if electricity remains nationalised.