HC Deb 29 January 1976 vol 904 cc322-4W
Mr. Tebbit

asked the Secretary of State for Energy (1) what are the latest estimated trading results for the current year for the Central Electricity Generating Board;

(2) what was the rate of return in the last year for which accounts are available on the assets employed in the Central Electricity Generating Board;

(3) what is the estimated target set for the Central Electricity Generating Board expressed as a rate of return on assets employed for the current financial year;

(4) whether he has agreed the corporate plan for the financial year ending in 1976, 1977 and 1978 in respect of the activities of the Central Electricity Generating Board; and, if so, what targets he has set;

(5) what was the rate of return in the last year for which accounts are available on the assets employed in the British Gas Corporation;

(6) what is the estimated target set for the British Gas Corporation expressed as a rate of return on assets employed for the current financial year;

(7) whether he has agreed the corporate plan for the financial years ending in 1976, 1977 and 1978 in respect of the activities of the British Gas Corporation; and, if so, what targets he has set;

(8) what are the latest estimated trading results for the current year for the British Gas Corporation;

(9) what was the rate of return in the last year for which accounts are available on the assets employed in the National Coal Board;

(10) what is the estimated target set for the National Coal Board expressed as a rate of return on assets employed for the current financial year;

(11) whether he has agreed the corporate plan for the financial years ending 1976, 1977 and 1978 in respect of the activities of the National Coal Board; and, if so, what targets he has set;

(12) what are the latest estimated trading results for the current year for the National Coal Board.

Mr. Benn:

The latest available trading results for the current year are as follows:

The Central Electricity Generating Board (CEGB) and the British Gas Corporation (BGC) are expected to make modest surpluses. The National Coal Board (NCB) is thought likely to break even. It should, however, be stressed that these results are still subject to uncertainty depending upon the weather between now and the end of the financial year.

The rates of return on average net assets achieved by the industries in 1974–75, expressed after depreciation but before interest, were as follows:

CEGB 6.2 per cent.
BGC 5.5 per cent.
NCB 6.7 per cent.

Financial targets, set by past Governments have not yet been reintroduced. But the current prices of both the CEGB and the BGC were set on the basis of paragraph 98 of the Price Code, which enables nationalised industries to choose to increase prices to an extent necessary to ensure a surplus of 2 per cent. of turnover or to make a return of 10 per cent. on net assets. The NCB's aim, endorsed by the Government, is to break even after payment of interest.

Corporate plans are reviewed annually. Those prepared last year by NCB and BGC covering the years 1975–76–1979–80 have been accepted. The underlying objective of NCB's plan was implementation of the "Plan for Coal". For BGC the main objectives were to operate in the most efficient and profitable way subject to the statutory provisions covering the supply of gas, the Price Code, and the provisions of the 1972 Gas Act. A corporate plan for the electricity supply industry is currently under discussion.