HC Deb 26 July 1983 vol 46 c406W
Mrs. McCurley

asked the Secretary of State for Scotland when he will announce a financial target and performance aims for the South of Scotland Electricity Board and the North of Scotland Hydro-Electric Board.

Mr. Younger

After consultation with the two boards, I have agreed a joint financial target based on their joint current cost operating profit expressed as a return on average net assets; an average return of 1.4 per cent. has been agreed for the period 1 April 1983 to 31 March 1986. The boards' individual statutory financial duties are not affected.

I have also agreed with the boards a joint performance aim for generation and transmission of reducing controllable unit costs in real terms by 4 per cent. over the period 1 April 1983 to 31 March 1985, and maintaining this reduced level in 1985–86, when the benefits of cheap natural gas supplies to the Peterhead power station will end. The boards have separate performance aims of reducing controllable distribution costs over the financial target period. The South of Scotland Electricity Board has been asked to reduce its unit costs in real terms by 8 per cent. while the North of Scotland Hydro-Electric Board is to reduce its costs by 4.5 per cent.

My decision to agree a joint financial target and joint performance aim for generation and transmission reflects the close integration of the two boards' generating capacity which includes the sharing of costs through their joint generating agreement.

Mrs. McCurley

asked the Secretary of State for Scotland if he will make a statement about revised external financing limits for the two Scottish electricity boards.

Mr. Younger

Revised external financing limits for the boards in 1983–84 are as follows. They have been adjusted to take account of the boards' latest forecasts, which show a slight reduction in external financing requirements.

1983–84 External Financing Limit
£ million cash
North of Scotland Hydro-Electric Board -2
South of Scotland Electricity Board 275

A further announcement will be made shortly about reductions in the limits following my right hon. Friend the Chief Secretary's statement on public expenditure on 7 July.