§ Mr. Biggs-Davisonasked the Secretary of State for Northern Ireland if he will make a statement clarifying the outcome of the review of electricity policy in Northern Ireland, having regard to the Prime Minister's commitment of 5 March to bring Northern Ireland electricity charges more closely into line with those in England and Wales and to keep them there.
§ Mr. Humphrey AtkinsMy right hon Friend the Prime Minister indicated in Belfast on 5 March that the Government have accepted, in the light of their review of electricity policy, that the present differentials in electricity tariffs between Northern Ireland and England and Wales constitute an unreasonable burden on the Northern Ireland community and that tariffs in Northern Ireland should be brought more closely into line with those in England and Wales and kept there. Without assistance from public funds a tariff increase of the order of 35 per cent. would have been required on 1 April.
In fulfilment of this undertaking I have asked the Northern Ireland Electricity Service to limit this year's tariff increases to produce the following results:
(a) Charges to industrial consumers to be on a par with the highest in England and Wales;
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£ million 1977–78 1978–79 1979–80 1980–81 Subsidies to industrial and commercial tariffs paid under the Electricity Service (Finance) (Northern Ireland) Order 1977 20 20 20 *18 Additional subsidy paid to compensate for revenue losses due to the policy of interim tariff restraint — — — 20 Total 20 20 20 38 * A final balancing payment under the 1977 order has yet to be made in respect of this year. (b) Charges to domestic consumers—last year some 14 per cent. above the highest in England and Wales—to be not more than 5 per cent. above the highest in England and Wales.
From 1 April 1982 the remaining differential of 5 per cent. in domestic tariffs will be totally eliminated. These relationships will be maintained thereafter.
This arrangement will be notified to the European Commission in the normal way.
It is estimated that the support required for the NIES in 1981–82 from public funds will be some £88 million at outturn prices. £32½ million is already provided in Northern Ireland's PES, the Contingency Reserve will contribute an additional £44.9 million and the balance can be made available from the existing Northern Ireland programme—for example because of revised requirements for demand-determined services and the identification of additional receipts—without reducing the level of other services.
In the light of the review of electricity policy I have concluded that there would be no justification for completing the second stage of Kilroot power station as an oil-fired plant nor for incurring the additional costs that would be involved in its conversion to coal-firing. I have, however, asked the NIES to undertake, in conjunction with my officials, a comprehensive re-evaluation of its future policy on generating plant, consulting as appropriate the electricity supply industry in England and Wales and Scotland and other relevant energy interests such as the National Coal Board.