§ Mr. ButterfillTo ask the Secretary of State for Energy what arrangements have been made in preparing the Central Electricity Generating Board for privatisation.
§ Mr. Peter MorrisonIn his statement to the House on 25 February at column 454, my right hon. Friend set out the Government's proposals for the privatisation of the electricity supply industry in England and Wales. Subject to the passage of the appropriate legislation, it is his intention to make the following appointments to the companies which will emerge from the Central Electricity Generating Board.
The first company will own some 70 per cent. of the CEGB's generating capacity, both fossil-fuelled and nuclear. Lord Marshall, chairman of the CEGB, is also to be chairman-designate of this new company and Mr. John Baker, managing director of the CEGB, is to be the chief executive-designate.
The second new generating company will own the remaining 30 per cent. of the CEGB's capacity, all of it non-nuclear. Mr Robert Malpas CBE, currently a managing director of BP, will be taking up the appointment of chairman-designate of this company when he leaves BP in mid-1989. Between now and then he will be available for consultation. Mr. Ed Wallis, presently director of operations for the CEGB, is to be the chief executive-designate of the new company.
The chairman-designate of the national grid company is to be Mr. David Jefferies, the current deputy chairman of the Electricity Council. The chief executive-designate is to be Mr. Bill Kerss at present deputy chairman of the South Wales electricity board.
The chairmen and chief executives-designate will be involved in the work which is now beginning within the CEGB to plan for the transfer of the existing business to the new companies once the legislation to restructure and privatise the industry has been approved.