Electricity Privatisation (Hansard, 9 December 1988)

§ Mr. Blair
To ask the Secretary of State for Energy (1) what is the anticipated dividend yield that will be paid to investors in the privatised electricity supply industry;
(2) whether the Government have yet made any provisional estimate of the asset value of the electricity supply industry on privatisation.

§ Mr. Michael Spicer
It is premature to make any such estimates.

§ Mr. Blair
To ask the Secretary of State for Energy what is the anticipated total staffing level of the office of the Director General of Electricity Supply.

§ Mr. Michael Spicer
The Electricity Bill currently before the House would provide for the appointment of a Director General of Electricity Supply, who would be supported by the staff of the office of electricity regulation (OFFER). We shall be consulting the Director General, as soon as he is identified, on the level of staffing of his office. We presently anticipate a need for a net increase of about 115 public sector posts. His staff will deal with consumer matters and meter examining as well as the regulation of the industry.

§ Mr. Blair
To ask the Secretary of State for Energy what is his policy towards the European Commission's proposals to harmonise the methods used by energy authorities to calculate prices; what effect the proposals will have on the privatisation of the electricity supply industry; and if he will make a statement.

§ Mr. Michael Spicer
The EC Commission has said that it will shortly be tabling proposals on the transparency of energy prices for major consumers of gas and electricity. These will be carefully considered by the Government.

§ Mr. Blair
To ask the Secretary of State for Energy how the merit order system for power stations will work in the privatised electricity supply industry.

§ Mr. Michael Spicer
Stations will be despatched on the basis of prices bid to the National Grid company, so ensuring that demand is met from the cheapest stations while maintaining the stability of the transmission system.

§ Mr. Blair
To ask the Secretary of State for Energy whether, after electricity privatisation, one area board will be allowed to make a takeover bid for another area board.

§ Mr. Michael Spicer
Arrangements will be made to safeguard the independence of the privatised distribution companies.

§ Mr. Blair
To ask the Secretary of State for Energy what, after electricity privatisation, the consequences will be of the insolvency of an area board.

§ Mr. Michael Spicer
As with previously privatised industries, such as British Gas, existing insolvency law would apply.
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§ Mr. Blair
To ask the Secretary of State for Energy whether he has made any estimate of the impact of 1992 and the single European market on the ability of the Government to prevent nationals of other EEC member countries owning shares in a privatised electricity supply industry.

§ Mr. Michael Spicer
It is not the Government's intention to prevent nationals of other EEC member states from owning shares in the privatised electricity supply industry.

§ Mr. Blair
To ask the Secretary of State for Energy if he will estimate the cost of transferring the national grid to the distribution companies.

§ Mr. Michael Spicer
The benefits of promoting competition will outweigh any costs that might arise.

§ Mr. Blair
To ask the Secretary of State for Energy when he anticipates publishing the regulatory framework for prices under the Electricity Bill.

§ Mr. Michael Spicer
We intend to make draft licences, which will include descriptions of the price controls, available for the Committee stage of the Electricity Bill.

§ Mr. Blair
To ask the Secretary of State for Energy whether, after electricity privatisation, contracts between large users direct with generators will be subject to any regulation.

§ Mr. Michael Spicer
No. Competition law will apply to such contracts but the licences issued to National Power and PowerGen will contain a non-discrimination provision.