§ Mr. Bill WalkerTo ask the Secretary of State for Scotland whether he has agreed a financial target for the Scottish electricity boards for 1988–89; and if he will make a statement.
§ Mr. RifkindI have agreed with the boards that they should achieve a current cost return on net assets of 2.8 per cent. for the financial year 1988–89. This compares with the target agreed for the current year of 2.7 per cent. It is for the boards to decide how the financial target will) be met but I am confident that any electricity price increases in Scotland next year will be significantly lower than those forecast for the industry in England and Wales. This reflects the different circumstances of the industry in Scotland. For example, with the completion of Torness there will be no need for significant investment in new generating capacity for some time.