§ Lord Sainsbury of TurvilleMy right honourable friend the Secretary of State for Trade and Industry (Ms Hewitt) has made the following Written Statement.
Subject to parliamentary approval of any necessary supplementary estimate, the Office of Gas and Electricity Markets net cash requirement will be increased by £5,771,000 from £1,785,000 to £7,556,000. The administration costs limits and DEL will remain unchanged. The impact on resources and capital is as set out in the following table:
£000s New DEL Change Voted Non-voted Total Resource 701,000 - 701,000 Capital 950,000 - 950,000 Depreciation* -1,250,000 - -1,250,000 Total NIL 401,000 - 401,000 *Depreciation, which forms part of resource DEL, is excluded from the total DEL since capital DEL includes capital spending and to include depreciation of those assets would lead to double counting. The increased net cash requirement arises from a cash payout in July 2004 to surrender an onerous building lease contract. There is no change in the administration cost or DEL because the financial impact in the form of a provision was taken in a previous financial year.