§ Mr. McGuireasked the Secretary of State for Energy what discussions have taken place in recent years between his Department and the Central Electricity Generating Board on (a) the criteria determining a merit order of operation of generating plant, (b) management policies with consequences for the merit order of operation of generating plant and (c) accounting and investment policies with consequences for the merit order of operation of generating plant; and if he will make a statement.
§ Mr. GoodladMy Department has regular discussions with the Electricity Council about the general financial framework for the electricity supply industry, and with the Central Electricity Generating Board about the board's capital development programme. Subject to these, the management and operation of the generating system, including the determination of the merit order, are matters for the CEGB.
§ Mr. McGuireasked the Secretary of State for Energy what account is taken of the likely merit order of operation of generating plant, and of possible changes in that merit order during plant lifetime, in considering investment approval for a new power station; what information on such matters is provided to his Department by the Central Electricity Generating Board; and if he will make a statement.
§ Mr. GoodladThe Central Electricity Generating Board now informs my Department of the net effective cost of a proposed new power station. The calculation of the NEC takes into account the expected position in the merit order of the new station throughout its expected operating life.