§ Mr. Skeetasked the Secretary of State for Energy, pursuant to the answer to the hon. Member for Bedfordshire, North on 1 February concerning external financing limits for the electricity supply industry, if he will list in the Official Report the components of the agreed financial framework within which nationalised industries operate which relate to the electricity supply industry.
§ Mr. Giles ShawThe financial framework for the electricity supply industry is as described in Part III of Cmnd, 7131, the 1978 White Paper on the Nationalised Industries, and expanded by the Government's statement of 4 August 1980 and the Treasury's Memorandum to the Treasury and Civil Service Select Committee in 1981 (HC 348, Vol. II, July 1981). The main components of this framework currently relating to the Electricity Supply Industry are:
Financial Target
- 1.4 per cent. return on net assets on a current cost accounting basis over the two year period 1983–84 and 1984–85.
External Financing Limit
- £418 million for 1983–84
- £740 million for 1984–85
Performance Aim
- Reduction of 4.25 per cent. in controllable costs over the period 1983–84—1984–85.
In addition, the industry's capital investment programmes need to receive my right hon. Friend's approval.
§ Mr. Skeetasked the Secretary of State for Energy (1) what plans he has for further and substantial purchases of French electricity under long-term supply contracts with Electricité de France;
(2) if he will give the actual volume of electricity imported from France (a) in 1983, (b) upon completion of the additional underwater cables to France and (c) envisaged for 1990.
§ Mr. Giles ShawThe existing 160 MW cross-Channel link was taken out of service in 1980, and so no electricity was imported from France in 1983. Once the new cross-Channel link—now under construction—is completed, trading between the CEGB and Electricité de France will take place within the framework of a broad commercial agreement already signed by the two utilities. A specific agreement relating to the use of the link for its first five years is now under discussion between the CEGB and Electricité de France.