HC Deb 17 January 1968 vol 756 cc620-3W
95. Mr. McGuire

asked the Minister of Power what estimate he has now made of the likely effects of devaluation on the operating costs of coal-fired power stations.

Mr. Freeson:

The direct effects are likely to be negligible.

Mr. Emery

asked the Minister of Power (1) what is the estimated increase caused by devaluation over the next 12 months in costs of oil and oil products used for electricity generation

(2) what is the estimated increase caused by devaluation over the next 12 months in costs of oil and oil products used as a feedstock for town gas reforming.

Mr. McGuire

asked the Minister of Power what estimate he has made of the likely effects of devaluation on the operating costs of oil-fired power stations.

Mr. Marsh:

The effect of devaluation on the cost of oil products used as a feedstock for town gas reforming and for electricity generation will depend to a large extent on the terms of individual contracts, the interpretation of which is a matter to be resolved between the supplier and the purchaser.

Mr. Leadbitter

asked the Minister of Power (1) if he can now estimate how many collieries in the Durham area are rated as economic but are likely to be closed if the power station at Hartlepool is nuclear-powered;

(2) if he can now estimate how many collieries in the Durham area rated as uneconomic are likely to remain open should the power station at Hartlepool be coal-fired;

(3) what is the cost of producing electricity per unit with a base load advanced gas-cooled reactor nuclear power station at Hartlepool, and the latest estimate per unit for a similarly loaded coal-burning station; and what would be the total costs per year in each case;

(4) what steps he has taken to examine the proposal of the National Coal Board to supply cheap coal for the Hartlepool power station; and what assurances he has received that the proposed price level can be maintained.

Mr. Marsh:

The Government are examining the many factors affecting a decision on the method of firing the power station, and I shall make a full statement on the main points relevant to the decision later.

Mr. Leadbitter

asked the Minister of Power how many power stations are equipped with dual-firing apparatus to use coal and oil; what tonnage of coal he estimates to be required to fire these stations; and what proposals he is considering for switching them back permanently to the use of coal.

Mr. Freeson:

None.

Mr. Leadbitter

asked the Minister of Power what power stations are fired by oil; what power stations are proposed to be fired by oil; and what steps he has taken to control dependence on foreign supplies of fuel in favour of coal.

Mr. Freeson:

The type of firing at all existing C.E.G.B. power stations is given in the Board's Statistical Year Book, 1967. Stations under construction are listed in Appendix 3 to the Board's Annual Report for 1966…67. These publications are available in the Library. The question of security of foreign supplies of oil generally was dealt with in the Fuel Policy White Paper Cmnd. 3438.

Mr. Leadbitter

asked the Minister of Power which of the three power station sites proposed, the Isle of Grain, Heysham, and Hartlepool, is ready for development; and what expenditure has been incurred on each site.

Mr. Marsh:

I have not yet given my decision on the C. E. G. B. 's applications for permission to develop these sites. The degree or preparation and consequent expenditure in advance of my decision are matters for the Board's commercial judg- ment in agreement with the site owners. The site at Hartlepool is already owned by the C.E.G.B.

Mr. Leadbitter

asked the Minister of Power what discussions he has had with the Central Electricity Generating Board on the future power station programme; and what are the priorities of construction of power stations which have been recommended to him.

Mr. Marsh:

I have frequent discussions with the C.E.G.B. on their future power station programme as part of their capital development programmes which are subject to my approval. Priorities of construction depend on the balance of a number of factors which have to be taken into account before a decision is reached.

Mr. Leadbitter

asked the Minister of Power how many kilowatts of coal-burning plant is now in use to provide power in the United Kingdom; what percentage this is of the total power production; and what is the cost of the plant including other coal-burning plant under construction and planned.

Mr. Freeson:

About 35 million kilowatts which is nearly 75 per cent. of all plant generating for public supply. To ascertain the cost of the plant would mean a great deal of expenditure which would not be justified as much of it has been built over a long period during which costs have varied considerably. The cost of coal-burning plant under construction is of the order of £1,000 million.

Mr. Leadbitter

asked the Minister of Power what is the nuclear cost per unit of electricity at Hinkley B Power Station; what is the nuclear fuel cost per unit at that station; and how this compares with the cost per unit of coal.

Mr. Freeson:

The estimated baseload generation cost for Hinkley Point B nuclear power station is 0.52d./kWh of which the fuel cost accounts for 0.11d./ kWh. Both figures allow for the effect of devaluation. The coal-fired power station at Drax has an estimated base-load generation cost of 0.60d./kWh of which fuel cost accounts for 0.38d./kWh.

Mr. Leadbitter

asked the Minister of Power what is the latest calculated cost per unit of electricity at the Dungeness B nuclear power station; and how this compares with the best coal-fired station which can be built sited on a coldfield producing the cheapest coal.

Mr. Freeson:

The latest estimate of the base-load generation cost for Dungeness B is 0.57d./kWh including the royalty payable to the U.K.A.E.A. and an allowance for the effect of devaluation. The latter was not included in the estimate in the reply I gave to my hon. Friend the Member for Mansfield on 13th December. [Vol. 756, c. 185]

The estimate for Drax, the latest coal-fired station ordered, is 0.60d./kWh.

Leadbitter

asked the Minister of Power what representations have been submitted to him by the Central Electricity Generating Board on the tenders received for the construction of the nuclear power station at Hartlepool.

Mr. Marsh:

None.

Mr. Leadbitter

asked the Minister of Power if he has completed his cost-benefit study on the issue of a coal or nuclear power station at Hartlepool; and if he will make a statement.

Mr. Marsh:

The study is not yet complete.

Mr. Leadbitter

asked the Minister of Power to what extent in drawing up the nuclear power generating programme he made a comparison with the programme in the United States of America in terms of numbers of stations, operating, under construction, on order and planned.

Mr. Freeson:

Conditions in the United States were fully appreciated when the nuclear power programmes were drawn up. However, those conditions are not necessarily relevant to a United Kingdom programme. The rate of ordering new power stations must be related to the rate of growth of demand of electricity and the total size of the system.