§ Mr. Dempseyasked the Secretary of State for Scotland when he will be in a position to announce financial targets for the Scottish electricity boards.
§ Mr. MillanThe White Paper on the nationalised industries published last306W March gave notice of our intention to set financial targets which would be tailored to the circumstances of individual industries. Following consultations with the electricity boards in Scotland, I have set both boards the target of achieving breakeven on revenue account in the financial year 1979–80 after depreciation and interest. Depreciation is to be charged in accordance with the boards' current accounting practices modified, in the case of the North of Scotland Hydro-Electric Board only, by a change in 1979–80 to the straight-line basis employed by the rest of the electricity supply industry.
In setting this target I have taken account of a number of factors, including financial policy, energy policy, the importance at the present time of containing inflation, and the continuing restriction of output from Hunterston B nuclear power station.
Details of forthcoming tariff changes will be made known after the Price Commission has considered the applications submitted by the boards.