§ Mr. David ShawTo ask the Secretary of State for Scotland if he has set the fossil fuel levy rate for Scotland for the current financial year. [25866]
§ Mr. KynochMy right hon. Friend has set the levy rate for the period up to 31 March 1997 at half of 1 per cent. This levy will be paid in the first instance by all electricity suppliers in Scotland on electricity generated from fossil fuel sources and electricity generated under the Scottish Renewables Obligation.
The moneys raised will support the generation of electricity from new renewables sources in Scotland under the first Scottish renewables obligation. Projects that will be supported by the levy include small hydro schemes, wind farms, and schemes for generating electricity from waste gas from landfill sites.
The cost of the levy to the public electricity suppliers, ScottishPower and Scottish Hydro-Electric, is expected to be passed through to electricity consumers. The increase to individual's bills will be in the region of half the levy rate because only a proportion of consumers' electricity is generated from fossil fuel sources.