HC Deb 30 April 1964 vol 694 cc94-5W
60. Mr. Warbey

asked the Minister of Power what in pence per kilowatt hour is his estimate of the capital charges, running costs and combined costs, respectively, of the Fawley oil-fired power station, the Aberthaw B coal-fired power station, the Wylfa nuclear power station, an advanced gas-cooled reactor station and a boiler-water reactor station of the specification for which the Central Electricity Generating Board has been authorised to invite tenders; and what the estimate would be in each case if the assumed rate of interest on capital costs were 3 per cent.

Mr. Erroll

The Generating Board's estimates are as follows:

—— Fawley Aberthaw B Wylfa
d/kWh d/kWh d/kWh
Assuming 7½ per cent. net return on capital*
Capital Charges 0.12 0.13 0.44
Running Costs 0.42 0.46 0.23
Total 0.54 0.59 0.67
Assuming 3 per cent. Interest on capital
Capital Charges 0.07 0.08 0.29
Running Costs 0.42 0.46 0.23
Total 0.49 0.54 0.52
* A net return on capital of 7½ per cent. (excluding provision for depreciation) is assumed by the Generating Board for economic assessments to take account of their obligations under Cmnd. 1337.

The calculations are based on the following assumptions:—

  1. (a) Load factor—75 per cent. The actual load factor at which the plants will operate will depend on their running costs in comparison with those of other plant in the system over their whole lives.
  2. (b) Useful life—conventional stations 30 years, nuclear stations 20 years. A shorter life is adopted for nuclear stations reflecting the limited experience of their operation.
  3. (c) irradiation period for nuclear stations—3000 MW days per tonne. The period adopted reflects the limited experience of the life of nuclear fuel.
  4. (d) The running costs for Fawley include the U.K. oil tax.

I cannot give figures of the costs of the A.G.R. or B.W.R. As I made clear in my replies to the hon. Members for Edmonton (Mr. Albu) and West Lothian (Mr. Dalyell) on 23rd April, we shall not have essential information on which to make a comparative study of the costs of different systems until tenders are submitted.