§ Mr. Ronald Atkinsasked the Secretary of State for the Environment, in view of recent increases in fuel costs, if he will now reconsider his policy on district heating, and, as a means of conserving energy and reducing costs, if he will arrange for the generation of heat and electricity to come from the same power station instead of being separately generated as is at present the case.
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§ Mr. FreesonI recognise that in the right circumstances district heating provides advantages, and local authorities have been encouraged to consider it at an early stage of their planning of housing developments. Extra loan approval to cover the increased capital costs of district heating is granted for approved schemes and expenditure is eligible for subsidy.
The new higher energy prices may mean that the possibilities in the area of combined heat and power schemes are more attractive in economic terms than when energy was relatively cheap. The Department of Energy and my Department are examining the economic case for the introduction of such schemes. The Energy Technical Support Unit at Harwell is also involved. Detailed discussions have also been held on the costing of schemes in other countries.